Why do you think everyone is using the term is wrong? Plenty of words get overused until they become meaningless but I have mainly seen enshittification used to refer to large companies significantly degrading their product in a bid to increase profits which is what I understand it to mean. If it's used a lot, it's because it's happening a lot (often by companies who built their products in the zero interest rate, infinite money era and now have to face the new reality).