It's also wildly unpopular among many Latinos, because there are hundreds of millions of them and they don't all have the same opinions. On the whole it seems to be a flop. But let's at least credit Latinos as a group with the agency to come up with their own ideas, good or bad, hey?
There are reports of online usage of both "Latinx" and "Latin@" going back to the late '90s. There are other references to academic uses that I haven't been able to track to original sources after a brief search.
Mainstream media (in English or Spanish) only appears to have discovered it in the last few years. I do get the impression that a lot of early adoption was from English-speaking Latinos in the US, which might explain the apparent incompatibility with actual Spanish. I don't read Spanish myself, so there's only so far I can pursue this. But it's not a recent invention of clueless white people.
"Latine" is a compromise I've seen proposed recently. https://callmelatine.wordpress.com/
On “Latine”: at a recent gathering of friends I mistakenly said «miembre» for “member” instead of «miembro» (I’m still learning Spanish). This led to a certain amount of hilarity and jokes aimed at the progressive gender-neutralizing crowd, that likes to use «e» endings instead of the correct ones. It’s a small extremist minority, and a general butt of jokes here. So «Latine» would be seen as just as ridiculous as «Latinx».
(I speak conversational German, a little Spanish, native English)
“Latine” and “Latin@” (and similar constructions for other -o/-a words) are not unheard of in some actual Latin American countries, though. The former has the advantage that it is straightforward to pronounce in Spanish (I assume for “Latin@s” you’d use the cumbersome “Latinas y Latinos”, and “LatinX” is just impossible).
"Latrine", " Latin@", and "Latinx" are almost entirely unheard of in actual Latin American countries, though.
The Association of Academies of the Spanish Language is the governing body that defines what official Spanish is. If you can find a single academy that lists "Latinx" or "Latin@" as official Spanish, I'll eat my hat.
These neologisms are nothing more than US leftist linguistic imperialism.