Previously you have to file a full petition with a serious job offer which costs thousands of dollars but now you just pay some entry fee and you're in. Obviously this was ripe to be gamed by shady staffing companies taking money from applicants for filing a petition and THEN finding a job later based on whichever staffing agency gets picked. It's not even illegal for multiple companies to submit a petition for the same person.
USCIS can fix this by just selecting the lottery based on passport numbers and making sure the full paperwork is filed before the lottery like a few years ago, but of course they'll just lazily blame others for taking advantage of something that is so easily gamed.
The real losers here are the students who studied in the US, worked hard to find a job and only submit a single petition through their employers. It's now way less likely they will get picked in the lottery.
My opinion - USCIS can't legally reduce H1B visas so they intentionally wreck the lottery system to invite bogus applications, who they can later reject, or they simply won't file a full petition, and they don't have to issue all the 85K H1B visas Congress has allowed.