Could Lovable's automatic 10% pay raise be the cure for toxic cultures?

No. "This program reflects the enduring company we want to build. It applies to all full-time employees meeting performance expectations on their work anniversary. The longer someone stays at Lovable, the more deeply they understand the company, contribute to its momentum, and shape its culture,” Maryanne Caughey, lead of Lovable’s people team, told TechCrunch."

So when they wish to not increase the payroll significantly they'll downrate everyone at the annual review.

Basically, it's exactly how you create a toxic culture.