Its definitly possible that the translation software was installed with byte, but never explained how it automatically translated the language. We don't know what happened exactly or when the protagonist was put into preservation due to the memory loss, but it could definitly be a hint that either byte is hiding something from us OR beastmen had appeared around the same time that the cascade happened, which could be useful to know, instead of them appearing randomly years later.
(I'm also ruling out that the translation system was learning the language as they talked since loken talked very little and yet we understood him as soon as he started talking)