I definitely have not had that experience, although use FF for personal, various work, and various educational places.
None of those have required me to install a particular extension..
Of course thats not to deny your experience!
The only time profiles ever come into it, for me, is using web driver, playwright, or whatever.
I guess maybe the usage stats dont support making the profile selector better.
But also, maybe its a thing they would accept a change for?