So I was thinking, in Skyrim in it stated that the Legion Pulled out of Morrowind around the time of the Oblivion Crisis, was it not?

wouldn't this go against what Ocato said in Oblivion? where he could not call the Legions back to Cyrodiil to protect its cities and the heir, as the Legion was stretched thin as is and the other Provinces required protection more then Cyrodiil, then saying for the time being the cities of Cyrodiil will be forced to fend for themselves?

This settles it. Ocato is the original Thalmor spy,

Honestly i assume either the story got mixed up, or maybe we should be shady on the Chancellors agenda

I dont think they pulled the Legion out of Morrowind. it is just that when the portals start to open everywhere and the Legion cant fight back it might seem like they were not in full force. And you know how pple always try to blame others when disaster happens