I would have found it more interesting if the song topping the charts was from a VTuber or something completely computer-generated, not much like this.
I think that a song by a vtuber is unlikely to top the charts right now because they're still not quite mainstream enough for that. I think the current perception of them is similar to how anime was perceived in the past ("Look at all those weebs simping over their fictional girlfriends"), but it is heading towards mainstream. HoloEN did a lot to popularise it in the western world, and I don't think it's unlikely that a song by a vtuber could gain more widespread popularity in the near future. They have the talent for it, it's just not quite escaped the "streamer" bubble
I'm not aware of any military backing, though. Kpop stars occasionally perform at army concerts - South Korea is a country with mandatory service for all young men, so as you can imagine these are popular -, and while I assume these are paying gigs it's also infrequent enough that I doubt you can call it backing.
Italo Disco would like to have a word I think ;)
Arte TV aired a really good documentary about the Italo Disco phenomenon recently, unfortunately it doesn't seem to be officially available on the internet yet - but they basically had it all, factory-line produced music with singers and "stage artists" being entirely different people, but among all that trash also sometimes really good stuff.
And they used synthesizers as "shameless" as nobody else, today they would go full AI slop I think.
(separately) Milli Vanilli was unfortunately a disaster for those involved.
Electronic production and distribution made the job easier in some ways - harder and more competitive in others - but the music factory system is not a new phenomenon.
Wait, wait, I know the history of that genre, it was on a very small scale... compared to modern k-pop I would still consider that normal independent music production :)