I mean sure, OP's title is somewhat clickbaity but it's kind of true though.
Somewhat? Did you read the issue? Here's a recap: yt-dlp will introduce a proper JS runtime in the future to better cope with YT's JS. That's it... that's the issue.
YouTube have broken compatibility with all existing unofficial clients.
In short: Money
Long story: Legacy
The really long story: They added a bunch of stuff in that version and it's the last LTS before they removed a bunch of other stuff and a lot of companies are just too lazy to update their 10 year old crappy software.
The end.