It's real. In some cases it's turned on by default and some are not
https://blog.google/outreach-initiatives/digital-wellbeing/m... has some information (not affiliated, just found this a while ago) . I can't find any info right now about apple or samsung or any of the other big vendors.
I think the impact is fairly damaging. I'm surrounded by people with body image issues, and the impact their issues are having on them is heartbreaking.
Sadly when I discuss this with some folks from that industry they pushed me to an academic debate about "well everything is post-processed after the sensor anyway".
There's probably some debate to be had again about whether this is creating issues, exacerbating existing body image issues, or actually just not having any impact one way or another. But I find myself believing that it is both creating and exacerbating.
And for a while I thought these were "first world issues" but many, if not most, of my friends are not part of the "first world" and they still have them.