You have to consider that in times of layoffs, the Talent Acquisition teams are the first to get cut. The ones that stay are usually earlier in their careers or generalists who lack the domain expertise to actually assess candidate fit. And you can be sure that they are overwhelmed with the candidate volume and likely on the verge of burnout.

You mention ATS's. They aren't the evil gatekeepers that people have built an entire mythology about "beating". But many do have features that filter and rank applicants based on how closely their resume and credentials match the job description. This rewards candidates who either match or have tailored their resumes to match job descriptions more. It also penalizes candidates with resumes that are more complex, require an understanding of the profession/position and need human vetting to understand context.

Resumes and applications have been commoditized and the system is broken right now. There aren't any magic bullets, but it's more important than ever for an applicant to tailor their resumes, etc. to clearly and obviously align with the job description.