Content creators, who are not intending to target children with their videos, are taking steps to ensure they're not ensnared by the onerous definitions the FTC has given for "children's content." The FTC has indeed explicitly said that the content creators, not YouTube, are responsible for flagging their videos as "for kids," and the content creators are personally liable to pay a $40,000 fine if the FTC thinks they made a mistake [0]. So videos where adults dress up in costumes, producing videos for other adults, but that a kid might like? Yeah, they don't wear those costumes anymore, because the FTC might consider it targeted-to-kids.
Meanwhile, actual garbage aimed specifically at children, like Elsa-gate and animated shorts with instructions for viewers to commit suicide, go untargeted by this non-fix.
[0]: https://arstechnica.com/gaming/2020/01/the-ftcs-2020-coppa-r...