Sounds like they went to the opposite extreme of their games like Vic2 where Britain keeps the majority of their forces at home preventing it from doing stuff while making it a pain to fight.
tl;dr Vicky 2 AI (probably Paradox AI overall) doesn't cope very well with needing to load units on transports
I'm not really sure this is the case with Victoria 2. I have done a fair amount of fighting against Britain in V2, partly because the countries I like to play often want stuff that Britain has (ie, assorted Boer territories as the Netherlands), and partly because Britain is one of the boss countries and it's interesting to fight them. Or sometimes just to carve away at their Indian holdings, which are extremely useful. What I've found is that Britain's home islands are generally very poorly defended. It gets a bit better for Britain in the lategame simply because lategame features tons of Reserves to mobilize and Britain's territorial constraints help funnel their reserves together (sort of like how Italy's shape tends to help guide an Italian AI into doomstacking effectively and makes Italy an ahistorically formidable enemy to fight on land in V2, and opposite to how Russia's vast size paired with direct proximity to Germany means that its reserves start out scattered and makes it easy prey for Germany), but as far as normal forces go, it tends to be underdefended. If you can have transport ships in place before declaring war and land troops before the British navy can catch them, or if you invest sufficiently into a navy to beat Britain piece by piece (you win naval engagements by doomstacking, which the AI isn't good at normally), Britain is actually very easy to beat on their home islands.
Where is the rest of the British army? Sitting in India, or walking across Eurasia and taking massive attrition losses. The AI in Victoria 2 is simply terrible at moving forces overseas, either - I think - because it's bad at reasoning about the cost and value of transports, or because transport scarcity makes it fail to trigger conditions that would cause it to load troops and move them overseas. It's not that Britain is keeping their troops on the home islands out of a desire to defend them, it just sucks at moving overseas. You'll find in any mod that makes the English Channel land-traversable, Britain will move troops into continental Europe if it can. And in any mod that makes the English Channel non-land-traversable, the British AI will be very limited in how many troops it deploys overseas. Similarly if the French AI can get troops into Britain without requiring boats, it will do so - if it has to use boats, it won't (in any significant numbers), even if Britain doesn't have a navy.
NWO/CWE mod AI is somewhat better - still bad, but better - at putting units on land. Transports were made absurdly cheap in those two mods and this seems to have helped the AI by making it have a large abundance of transports.
I think what's happening is that either it has a bunch of separate logic blocks like these, that don't directly interact but that can bring about conditions that trigger the next logic block, without a grand plan:
1 - If I have docked transports and unallocated troops, move to coastal province where docked.
2 - If I have troops on a coastal province with open transports, load troops.
3 - If I have loaded transports not at an enemy coastal province and I am at war, move them to an enemy coastal province.
4 - If I have loaded transports at an enemy coastal province and I am at war, unload troops to that province.
(in this case more and cheaper transports increases the odds of block 1 being triggered, which helps the other blocks happen)
Or, it actually can think in terms of "I want to move troops to this overseas province so I need to bring transports here" but it considers them too valuable to relocate, or because they're attached to a fleet with combat ships it doesn't want to pull the fleet away most of the time. In which case again, more and cheaper transports (and ships in general) increases the odds that it will have "something free" that it can use to move its troops.
Either way, HOI4 fixes this by abstracting transports away into convoys so the AI can just treat friendly to friendly overseas provinces as a single path, and doesn't have to worry about complex overseas pathing or about whether it can spare a fleet to guard its ships. Invasion Plans also probably help streamline this logic for the AI.