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Honestly "Mascot Horror" is such a weird term too.
Conceptually I get the point, they're targeting nonsense like Poppy Playtime or Five Nights At Freddy's, where the entire game is built around marketable characters - usually aimed at children.
But the issue is... this isn't a new phenomenon, not just for indie horror (Slender, Spooky's, etc.) but big budget horror too. Resident Evil: Village's marketing was pretty much entirely around its "mascots" (Lady Dimitrescu being the most blatant one), and this has stemmed all the way back to characters like The Scissorman in the original Clock Tower.
And hell there are some good indie games under the label "Mascot Horror" too, Choo Choo Charles being one of them. Doors, which is weirdly enough built on Roblox of all things, is also a genuinely good experience.
Just call the bad games that, BAD, we don't need a fancy new YouTuber label for it.
Nightmare of decay was dope. Felt like old school resident evil >

They're undead!