I almost never watch "shorts" but my suggestions for it seem to have an...uhhh...adult theme. I don't watch any such thing with YouTube. Does everyone see garbage like this?
I have no idea but I experience the same problem with small set of repeating shorts when on my home wifi network.
If I disconnect my phone from the wifi and use mobile internet instead, it often starts working better with YouTube Shorts.
Edit: my comment was about the set of shorts repeating and not why the algorithm choose sexy shorts for you.