Not to defend the practice of "CGI everything," but there's a new-ish technique which I first became aware of from the Mandalorian, where the actors actually see the rendered CGI on massive screens around them - think the holodeck from Star Trek TNG. The physical props exist between the characters and the huge display, and the projection is even bright enough to (partially) light the scene. You can see this technique in the "Making of the Mandalorian" documentary series.

I do think CGI is often overutilized, much to the detriment of many shows and films, especially in genres where practical effects get the job done (i.e. - not sci-fi). However, these techniques are evolving, and the actors can at least start to see visual cues and interact with the same digital elements that the viewer will ultimately be shown.