It is because their previous CEO said animated movies are for kids:
https://gizmodo.com/disney-ceo-bob-chapek-animated-films-quote-frozen-pixar-1849710032
The board finally got rid of him and his mentality, but the "make everything live action so that people who think animation = kid can still watch our stuff" division is still churning out stuff while the "how do I make AI art into a whole Disney movie for pennies" division is still trying to get off the ground.