Why Does Hollywood Keep Making Villains Sympathetic?

It really isn't. Evil is only interesting because of its relation to the moral being explored. If the villain loses because he wastes his time kicking every puppy along the road, then the only meaningful character trait in the hero is the fact that he kicked slightly fewer puppies and therefore had more free time.

They ruined Michael Myers by trying to give him a back story

There are plenty of horror villains with sympathetic traits btw. The "Saw" puppet guy and Jason are two examples.

Are you able to name one unsympathetic interesting villain? (Besides Big Jack What's-His-Name, since I haven't watched the movie yet.)

Ganon man is sympathetic

Dark orange man has to be bad to balance out the light.

Wicked. Not out yet.

The Wicked Witch of the West is akshually "LE GOOD" and a lesbian with Glinda.

It's based in some fan-fic musical.

A movie where they put a black girl in green face and a brown girl in white face.

Shrek: peepee dimension

Would be kino, especially if the Sultan is genuinely well-meaning but incompetent and Jaffar starts out being loyal to him but gradually grows to resent him.

Make a point about people wishing for silly things when there are people in the streets suffering... This could be pretty good!

Mostro is the victim of Industrialism and Colonialism.

You (the "foid You") don't NEED spermaceti for consumer products. You just don't want to go without it even the cost of the life of Mostro.

!freemostro

I think the majority of the time it's laziness. "If I wrote my villain as being a bad person who is bad for bad reasons then I would have to write my character as being good too, and I'm lazy".

But most of the disney villains are portrayed as being initially being good who are then wronged and are villains for revenge or seek to upend the system that "oppressed" them.

like magneto

Avatar (the wind boi one) has quite complex themes throughout, but still has "le evil fire man wants to burn everything because evil" as the red thread. Given you could argue that he's got a sad childhood too but it's only hinted at.

A lot of this boils down to 'any of these concepts can be done well, some just require more talent to make work than others'. And there's a lot of untalented people who get work with ideas beyond their ability to execute.

This isn't a new problem, though we can only talk about the examples we're aware of. I feel like the reason the issue is worse now isn't because more things are shit, it's that we can now watch and read more from the creators online. Which lets the audience see how different what they thought they were making is from what they achieved, or how poorly they receive criticism and turn on their audience, or how little they understand about what people enjoy in their work.

Matrix: Resurrections, being very meta, has a scene where characters discuss what people liked so much about The Matrix. And besides people liking different things (and rarely more than the first film), it's an exercise in believing their own hype and grandiosity. Hence, bad sequels.

Also the villain breeds Dalmatians but there aren't any old ones walking around. Most likely she drowns them when they get too old to push people off the cliff.