No, it’s the exploitation by Reddit of free labor.
If these mods don't like it, they can withdraw their labour and walk away, let someone else do the work. Ruining things for everyone else who wants to participate in a subreddit is just abusive.
Reddit are ruining things for a significant portion of the users that contribute with high quality content.
In 2020 it would have made sense as it was the mods sub.
In 2023 it doesn't make sense as the mods are free labour to Reddit Inc.