This is definitely part of their fall. Everyone -- from producers to players -- _thought_ they needed 3D. But it's poorly suited to adventure games. Shadow of the Templars is an excellent example of this: new enough not to be pixel art; old enough not to be 3D. Perfect.
Even the Monkey Island games turned 3D with the fourth installment. Having played through them all (again!) over lockdown, it's that game, Escape from Monkey Island, which now looks and plays the worst.