Yeah I agree, it's definitely more off-putting when it's an actual person in the edit instead of a character.
Personally I feel a little awkward whenever I see them. I've thought of trying to make edits of some of my favorite models/cosplayers but given the largely objectionable content of the site I usually assume that they wouldn't want their pictures involved like that. Especially considering, things don't always stay here; if someone makes an edit of a real person and covers them with white supremacy stuff, that could end up getting passed from site to site, removed further and further from context, and eventually find the light of day elsewhere on the internet where it could end up being mistaken as some of their own content... with potentially life-ruining implications for them if it escalates.
When it comes to avatars, like in Jaiden's case or the various vtubers, I think there's enough of a buffer there that it's less worrisome, but ultimately I think it's only a matter of time before something bad ends up happening as a result.