it changed from being “users who watched this video watched X next” to “You would like Y videos based on your watch history” (somewhat biasing the first 2 or 3 to be related to current video)
In general I find the selction on the homepage to be useful, however it does take some work as I regularly remove a lot of random things.
I also open random videos in a private window to keep my watch history more focused.
So it works fairly well for me, bringing up videos from channels I like that I haven't seen before... but it takes effort to get it to work for me. So it is arguably not very good for a typical user.