Yes, they are heavily farmed for fleece as every Weaver needs them to level and sell for a lot on the market.

Necrologos: Cinerary Rite is the leve that spawns karakuls. It also spawns a bavarois that drops pudding flesh which sells for around 8K (normal) on the market and I think 20K for the HQ. It's the only baravois in the world that drops it outside of dungeons.