Agree with the latter portion of what you are saying. But did you play DOS2, specifically the last two acts? Larian always posits a lore or story-based reason that densely populated areas or functional civilization are suddenly absent, like the conflict on the Nameless Isle or the Siege of Arx or the various troubles on Reaper's Coast. They turn "civilization" into urban wilderness, and safe "neighborhoods" or boroughs into village equivalents. There's not actually a world that feels lived in because it's all a crisis waiting for you to show up so they can hit the "play" button, like Waukeen's Rest.
The section in bold is something I've thought about a lot with Larian games in general. They feel like, I don't know if this is the right word, but amusement park rides. The world is the park, and each area is a separate ride. In BG3 we have the crypt ride, the grove ride, the goblin town ride, the burning inn ride, etc. They all look great, and can be fun, but it doesn't feel like a cohesive area. Just the fact that a goblin stronghold is a minute walking distance from the grove, which is right beside the crypt, which is right beside the ship crash makes it all feel very artificial and unorganic.
