I personally can't see it working either. Mecha-G would ruin the (somewhat) believability that's been established in the MonsterVerse with G14 and KSI. True that the limits were really pushed in KotM (a little too much for me), but adding a ~400' machanical monster is just on a whole other level.
Also, world building is fine if it's done right, but I think that making GvK an all out "destroy all monsters" kaiju flick with ancient, genetically modified, or machanical monsters all going out at eachother would be a huge mistake. The title of the movie is Godzilla vs Kong, and as such I would love for it to be soley focused those two characters. Their emotions and motivations can't get through to the audience if there's more than just their battle going on at the same time, imo. I really don't want Mecha-G in the movie much at all, but I have a feeling that might not be the case.
"What’s so great about discovery? It’s a violent, penetrative act that scars what it explores. What you call discovery, I call the rape of the natural world."
— Dr. Ian Malcolm, Jurassic Park (1993)