Depending on the organization, a VP title may not have "a seat at the table", which can lead to HR taking a back seat. This can include being overshadowed by Finance or Operations if HR rolls into the CFO or COO, respectively.

So the "title inflation" is a recognition that people is a tier-1 function, and needs airtime and visibility at the most senior levels.

As an aside, "Human Resources" is falling out of favor given the Dilbert-esque implications around HR. And "People Ops" always struck me as overly operations-focused and tactical vs. strategic.