Disney kind of fought back. Consider the 'Stage Craft' they created for S1 of The Mandalorian. It allowed them to show the alien planetary backdrops in realtime behind the actors, lighting included to improve their immersion. They also used loads of practical SFX, notably in the portrayal of the adorable Grogu character. He has more in common with Gizmo and ET.

Marvel movies still look awful. Deadpool 3 was funny but it looked like a cutscene from a videogame.

John Favreau pushed for practical SFX where possible. This even extended to spinoffs. I know many didn't like it at all but there is a chase scene in Book of Boba Fett done in a studio using sets and practicals where possible. It comes off a little stilted in delivery but they deserve plaudits for trying.

Fede Alvarez has made Aliens: Romulus using 100% sets, puppets and wirework.