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.
It's the reverse IMHO.
The larger society needs to change first; entertainment (and politics) is downstream from that.
As I mentioned in a previous post about GenZ, a lot of this is demographics. The demographics and attitudes of young people in North America and even Europe has drastically changed over past several decades.
Hell, even Japan (especially among the youth) is dramatically different from what it was in the 1980s for example.
Younger customers are who companies and advertisers target. They see us old farts as living on borrowed time.