> It makes no sense that Google would intentionally degrade their search quality now (and even years ago) for some hypothetical future where they have replaced it with AI.
It literally does though.
Furthermore, even if you reject that, in practice it could be as simple as Google funneling resources from maintaining search (which is obviously a never ending game of cat-and-mouse between forces of SEO, etc) to AI prospects, which would have the same outcome: neglect leads to degradation and dysfunction, and it makes their new venture more appealing. They obviously have enough capital to play such a game in the short-term and eat whatever loss necessary during the transition.
Google is well known by now for abandoning their products in favor of what they deem to be the Next Thing.