Earlier quoted context omitted.
Per the article the previous generation was only roughly 30% efficient, which makes it just not competitive with propellers. Swapping out your diesel motor with rotating shafts going through your hull and an alternator to generate electricity for a diesel generator that just generates electricity is reducing complexity, not adding it.
the alternator is already there, too, since modern diesel submarines are actually diesel-electric submarines, able to charge batteries with the diesel engine and then shut it off and run from the batteries to go quiet so, the difference is between props vs. no props, which is big.
But they too have alternators (and/or dedicated generators)... because it turns out electricity is really useful.