I'd say enshitification is a good enough word.
Verschlimmbesserung is not widely used these days in Germany.
It's certainly used - not in the top 100, but if the situation calls for it, it's not unexpected.
There's a big difference between enshitification and "Verschlimmbesserung". The latter has the intent of actually improving things, while the first is making things knowingly worse for profit.
I do think it's part of many people's vocabulary. It's a bit informal. And it's not a word you use every day. But it's definitely a word that gets used when the occasion calls for it, just like the related verb "verschlimmbessern."
"Enshittification" isn't the same thing. "Verschlimmbesserung" is when you try to fix a loose connection in a power cord and then no electricity flows at all, or when you try to fix a bad haircut with a trimmer and the haircut ends up looking even worse, etc.