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Seems to me the issue here is overall strategy.
The overall strategy seemed to have been foster discussion, then sell that content to AI scrapers and search engines while also collecting ad revenue.
Problem is, if the AI search engine scrapes the answer out of the discussion, they'll often answer the user's question and thus you won't get the ad revenue from the click. And if you need to log in to see the discussion you'll lose the ad revenue from search referrals.
In short- 'we created a business letting others cannibalize the value out of our database and now we're shocked there's less value in our database'.
Reedits value was always in its community. When they started pissing off the community that vanished at which point all they had left was the data set so they sold that because they didn't have anything else of value and now that ship has also sailed.
The way back for Reddit would be to get rid of the toxic leadership but they won't do that so they'll just spiral into irrelevance.