It seems like they directed (some of) the budgets for it to random character encounters/sightings. Like for example Stitch can be spotted on a balcony waving to guests throughout the day and at night when guests leave. Donald and Daisy could be spotted playing, having a picnic, dancing, etc. in the area near the Chinese Theater. Goofy and Max could be spotted spooking guests in the ToT queue. Frozone and Edna (used to) were spotted also near the Chinese Theater.
These were things I don't recall occurring before the 2020 closures, afaik.