We started noticing this back before/during October 2022, and has been expanding in occurrence.
@keyserholiday posted about Google lowering map pack results (for certain keyword searches) which seemed to coincide closely with certain industry specific "near me" keyword search results being almost useless for local intent. For us, it significantly has impacted our medical clients but others have been affected too. Things like "flu shot near me", "rsv testing near me", etc. When Google returns non-local results without a local pack, how helpful is that?!
My gut feeling: it is due to Google's rough Q3 and Q4 in 2022, which they obviously knew well in advance, so they began to dial back the helpfulness of "near me" searches and placement of the local pack. It looks like they also are expected to show a pretty weak
Q1 2023. For industries that rely upon the Local Pack and Organic results for "near me", Google probably wants to monetize those searches, so it is forcing Ad spend to get local visibility.