>There's already VTubers who's whole visual identity is synthetic
No. Their assets are synthetic. Their identity is not. Their value and identity is in the real relationship and trust the creator builds with the audience. And that is what the company in question here tried to imitate. They didn't copy Jeff for his angelic voice, they copy him for the trust implicit in his reputation, name and 750k followers. It's the same reason Chris Pratt still gets hired to do commercials for millions despite the fact that any acting student would do it for 500 bucks and why openAI tried to copy Scar Jo in particular.
All these performances can be done by anyone for nothing, but they have commercial value because of the reputation of the person that's lending their likeness to them. And that's of course also why this is blatantly illegal by the way, we have personality rights and you can't shill your product with someone's likeness without consent, whether that likeness is AI generated or reproduced in some other way.