This always sticks out to me in these lawsuits. As someone on the spectrum, I'd bet that the worst C.AI victims (the ones that spur these lawsuits) are nearly always autistic.
One of the worst parts about being on the deeper parts of the spectrum is that you actively crave social interaction while also completely missing the "internal tooling" to actually get it from the real world. The end result of this in the post-smartphone age is this repeated scenario of some autistic teen being pulled away from their real-life connections (Family, Friends (if any), School, Church) into some internet micro-community that is easier to engage with socially due to various reasons, usually low-context communication and general "like-mindedness" (shared interests, personalities, also mostly autistic). A lot of the time this ends up being some technical discipline that is really helpful long-term, but often it winds up being catastrophic mentally as they forsake reality for whatever fandom they wound up in.
I've taken a look at r/CharacterAI out of morbid curiosity, and these models seem to turn this phenomenon up to 11, retaining the simplified communication but now capable of aligning with the personality and interests of the chatter to a creepy extent. The psychological hole you can dig yourself with these chatbots is so much deeper than just a typical fandom, especially when you're predisposed to finding it appealing.
I'm not saying that C.AI is completely blameless here, but I think the same category of people getting addicted to these models is the same one that would also be called "terminally online" in today's slang. It's the same mechanisms at work internally, it just turns out C.AI is way better at exploiting it than old school social media/web2 has.