I think the "weird AI processing" might have been someone misunderstanding a compression codec. When laypeople see anything advanced, it's always called AI no matter what it actually is, and that's the word that spreads around.
I’ve also seen the trend of TV clip slop using AI filters to I assume get by automatic copyright flagging/removal/de-monetization.
https://www.bbc.com/future/article/20250822-youtube-is-using...