It's not so much that they want to avoid objectification. They do that, quite openly. The issue is a staggering amount of people these days in the industry are prone to autogynephilia and so the aesthetics and character designs reflect that.
These people aggressively radicalise each other until everything they do revolves around subversion.
At this point the entire industry needs a hard reset and society at large requires a purge of unhinged ideologues and subversives. We're arguably seeing the former happening though not as quickly as I would like. The latter will inevitably come just like it always has throughout the other periods of human history when these nutters gained power and pushed too far. If only because their goals are simply not at all sustainable in reality.
I wouldn't say they are 'prone to autogynephilia' so much as progressives developed a social atmosphere that both encourages self destruction and empowers cluster B personalities to do what they want. That means the people who dwell within this social structure end up reliably mentally ill and compensate by performing aggressive social punishment on each other and notably on any out-group. Even the slightest pushback gets severe consequences internally so no uprising occurs against any of these from within the group. Given how often they accuse others of toxicity, they are the ultimate form of it.
That's how you end up with social contagions resulting in child mutilation and institutions, filled out by these same people, aiding and abetting the contagion and mutilation. There is no limiting factor as to do so is bigotry/racism/sexism/phobia. It really is a manifestation of the worst aspects of human nature. The kind that could throw children in a volcano to appease the gods for better weather.
As noted from those external to the group, progressive ideology infusing entertainment has gone hand-in-hand with lower quality and hyper aggressive signaling to conform to those same dictates they impose on themselves. The idea that all aspects of the decline are corporate managements fault is laughable to me.
