I feel like the issue with player engagement is that fact that the game no longer challenges you/punishes you for not interacting with the game currently, outside of a few select dungeons, you're not being challenged/put ina situation where your engagement matters atm. In some cases you can, not do anything outside the bare minimum, and you'll clear. I regularly see people just standing there in many lower lvl runs and most groups dont care to kick them.

If the scaling wasn;t so out of whack, a decent amount of dungeons/trials/normal raids would require more attention outside of the 1-2-3 combo or occasional AoE heal to keep everyone alive, unless you're ina group of very new people who struggle with a lot of the basics of the game.

On top of that, with the current state of the game most lvling dungeons have been horribly scaled to deal with the overflow isues talked about at the Showcase for Endwalker, its understandable why given they have to fix this on their end, but prior to Shadowbringers player engagement was higher and it was a bit more uncommon to see people not wanting to interact with said contents engagement. Adding in a system like this is essentially moot since older content will be scaled differently once we're in Endwalker and said overflow issues are adressed by the dev team, and the games increasing difficulty will naturally encourage people who care to play better so they dont take too long or wipe indefinately.