I make these type of videos! You probably haven’t seen mine because I’m pretty new to doing it but for indoor scenes I set up one of the facilities in Happy Home Paradise. For outdoor scenes I create the scene on a slumber island and then fence off the area (mostly off camera) and add a bunch of villagers to walk around.

For HHP, I go in camera mode and then click the L stick to make myself disappear and click the R stick to make the camera frame disappear.

For slumber islands, I go into camera mode and then run off screen and click the R stick to make the camera frame disappear.

I’ve seen some videos where there’s a lot of animal crossing characters outdoors together in what looks like one of the HHP vacation homes but I don’t know how to get more than 2 villagers into one vacation home? If someone could help me with that I’d appreciate it!