Are these artists even "fake"? Are they "bad"? Or are they just mediocre and good enough for background music?

I guess the complaint is that jazz is still kind of a niche genre, compared to "background music that generally resembles jazz". But maybe real jazz is actually less good as background music compared to not-quite-jazz. Otherwise, why aren't actual jazz labels putting effort into playlist placements like these so-called fake artists are?

Or is the assertion that Spotify themselves is populating their platform with no-name artists, to avoid paying record label royalties? Maybe you can take issue with vertical integration, but that doesn't make the artists involved "fake".