I strongly suspect that a new class of abuse is recent.
literally is actually reasonable as an intensifer for a figurative situation. I.e. the speaker is asking you to forget that you're just using an extreme figure of speech for a situation that is actually mild, but instead imagine it literally happening. I.e. the situation I'm describing is in fact so intense, that please pay attention to the figure of speech, since it is utterly fitting.
What we have now is literally just being applied randomly where there is no figure of speech, or not even a plausible figure of speech, as in:
> I literally just moved here from New York last week; do you know where I can get a decent bagel?
Here, "literally" doesn't inform us that a plausible metaphor is actual ("moved here from New York" is not a common figure of speech with a special meaning, and is vanishingly unlikely to be interpreted as such), and doesn't ask us to get a more intense sense of a metaphor by imagining it as actually happening: the move actually happened, that's all.
The word is just a morsel of pure verbiage.