It is not freestyle, it is "play a random position chosen by an algorithm" style. This is boring. Let the players freely place their pieces in the start position, that would be of interest.
You were allowed to use engines, opening books and tablebases. You were allowed to play in teams (GMs were part of some). You were even allowed to bribe your opponents into losing! But it died out fairly quickly and now the name has been reused to mean Chess960.
With being able to place your own pieces, you can much easily dictate your opening beforehand. And I have little to no doubt top players would converge towards certain optimal placements. And then you'd be back to playing the same positions over and over, just like standard chess. Which is what Fischer Random attempts to stray from.
Also, on a more subjective note, quite the crazy opinion to call this format "boring". I haven't looked at these games yet, but the 2022 World Championship had some absolute crazy games. With crazy openings and positions that you just never get in standard chess.
As far as I know no tournament ever used this rule.
A key part seems to be alternating turns placing pieces. I wonder if this would result in top level gameplay converging on certain opening placements? If so, I wonder how not taking turns but deciding on placement privately beforehand might affect gameplay.
Anyway, maybe when the pros get sick of Chess960 they'll give this a shot :)