Perhaps if employers were better at identifying people's skills from their CVs, they wouldn't need to use AI to rewrite them. A lot of the time, it feels like if your profile doesn't match 100% of the keywords in the job description, it's just automatically denied on sight, even if you've clearly got the ability to do the job. Heck, a lot of the time these systems can't identify synonyms or recognise when a skill is blatantly obvious from the description (like knowledge of Git meaning they have knowledge of Version Control).

People are relying on these things because hiring systems are rejecting their applications otherwise.

As for the AI generated portfolios and Git repos... that's not quite the same thing, but even then it's because expectations for employees seem to have become rather ridiculous in recent years. It's apparently not enough that you've got experience working in a field, you're expected to be obsessed with it in your free time too, and document every little thing you ever worked on online for all and sundry to see.