Seeing TADC in the thumbnail and the "stock footage with scaryvoice" shockumentary intro immediately put me off this video (plus a link to another video from the same person with the same thumbnail but with Minecraft characters; seems like a good racket). So, my two cents:

🪙: The Amazing Digital Circus is a pretty-brilliant psychological horror adult animation. It shouldn't be recommended to little kids, for sure, but it's not "disgusting content."

🪙🪙: There is definitely a problem with the stuff being recommended to kids on YouTube. Google has no real incentive to fix it, of course, but leaving a kid to watch YouTube at random long enough to wander into the really weird shit is kind of on the parents. It's a video service that cares only about serving ads, not a babysitter; either adjust your expectations or stop complaining.

There are plenty of services for only a few dollars a month that are actively safe for kids. Quick DDG found this (and I'm a little dubious about them including the big players like Netflix and Prime, but they also list stuff that looks better): https://thestreamable.com/video-streaming/best-streaming-service-for-kids

Anyway, here's a much better video courtesy of Dan Olson about the weird stuff on YouTube aimed at kids: https://youtu.be/LKp2gikIkD8 (and its only 15 minutes long)