Of course actual capital fights tooth and nail to prevent this, even if this means literally getting people to starve and unable to earn with a job, even agricultural.
There are known fixes, starting from making basic services and items free (eating the material cost which is pennies actually), employing more people running these as they're currently all understaffed.
Abundance is the expected outcome of the technology. Including abundance of leisure time. Capitalism however requires scarcity for profit and oppression to keep the rich special.
We have an abundance of housing, so why are some unhoused? We have an overabundance of food but some people are hungry and malnourished. Things might get more dicey with water soon.
At some 90% of human labor would become obsolete and we as a society should spend some time planning how to handle this situation. UBI is one such solution.
I think that continue paying people doing meaningless work just to preserve their dignity is stupid and counterproductive.
As you said, it's "we as a society" needs to figure out a solution. If society ignores this problem, then I think the anti-technology aspect of Luddism is at least understandable IMHO.