Many tech companies were overvalued for a long time. Everyone was happy to invest and pump money into those companies because "those platforms are going to be the future and I want to be part of it when they are starting to make a ton of money". It didn't matter that many of those companies were not profitable because they always promised to make up for that in the future.
This classic idea is starting to break down a bit. Many Tech companies have become profitable in the meantime, but many of them also have various troubles like moderation.
So why are so many media companies making "shitty decisions"? Well, because from a business perspective, they aren't necessarily "shitty decisions", they are kinda smart decisions. Reddit makes money by gathering data and by showing ads. They cannot show ads on apps they don't control. So they have to handle a lot of traffic for which they get nothing back. That's why they are trying to push as many people to use their app as possible. They know that the hardcore oldschool community won't like that, but they are probably pretty sure that enough will switch to the app to make it worthwhile for them.
Meta is fighting to stay relevant as well. Facebook was the foundation of social media for a long time, but in the digital space, this can change very quickly, so they constantly have to try new things.
And if we look at games like the Sims, the game who really escalated the whole DLC thing, it's a similar story. From a consumer perspective, what they are doing is bad. From a business perspective, it's smart. And that's what it ultimately comes down to.
Companies' main goal isn't to satisfy their customers, it's making money. If fucking over customers makes them more money, they do it in a heartbeat.