I understand the difference between the "majors" (Sony, Universal et al.) and Spotify themselves doing it, but of course this is also what the old style labels do; purchase music and then promote it on the streaming platforms by purchasing visibility in various playlists.
I have an office job for a living, but have always been playing jazz on the side, most often with no profit whatsoever. By coincidence, I happened to get a gig producing "background café jazz" music for a major label. I cannot disclose any details but I think the deal is fair. I can indeed confirm that mass produced similar music is proposed as a template for yet more of the same, but I want to stress that we try to make meaningful music and that we have a lot of fun doing it. And we have never used a first take of any song.
I agree with the opinion expressed in the excellent Liz Pelly article that this type of music will most likely soon be created by AI and we're just doing this while we can (which might not be for too long).