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).

It's authored by the guy who coined the term originally; so however he's using it, that's the way it's used.