There are hundreds of online tutorials promising you how to create designs for sale on Etsy - even if you have not a shred of design talent. How? Go to Canva, find a good-looking template and slap on it on as many POD products as possible. Etsy is simply overstuffed with products like this. Many of these sellers are probably making good sales. Does this count as something being 'designed'? Does it even matter?
The perception that Etsy is a marketplace mostly of artists and "makers" is one that hasn't been true for a while.