
autumn iris:
You shouldn't do/support fanfics, it's harmful!
Please distinguish between fanfiction as a whole and Real Person fiction ("RPF").
And I'd even go a step further: please distinguish between Real Person Fiction of living people and of dead people.
They are not the same.
Fanfiction has existed since people tell each other stories. What else is "Dragon Ball" but a fanfic of "Journey to the West"?
Real Person Fiction of Dead People has also existed for centuries -- what else are what we now consider myths and legends but tellings and re-tellings of a real person's life? And movies based on real stories, like the recent "Oppenheimer"? Fanfiction, basically.
Real Person Fiction of Living People Without Their Consent -- that's where things start to get questionable, because as the author, you'll infringe on their personality rights. The person in question can go after the writer, just as they could do with defamation posts -- but it's not the duty of a government to "regulate" every kind of fiction, just because some egotistical fools can't see the difference between fanfiction of a, well, fictional work and fiction of a real, living and breathing person.
And if there are fools who can't see the difference between an actor and the character they played, and mix up the fictional work and the actors -- well, that's on them.
In short:
Fanfic about "A Dog and a Plane"? Yes!
Fanfic about New and Tay? No.
Thinking a fanfic about "A Dog and a Plane" is about New and Tay? No!
And is the latter the author's problem? Of course not, it's on the reader.

autumn iris:
Why should people do fanfics? Pretty sure that's for the reason I mentioned above. It's for either traffic or money.
That's a very misanthropic take.
I know more than a few fanfic writers personally. They do it for the joy of writing. For the love of the original work. For themselves, because it makes them happy.
If they didn't, they'd never write for small fandoms at all.
Actually, as soon as you make money off it, fanfiction does cross the line into plagiarism, and the original authors can legally do something about it. That's why the Archive of Our Own doesn't even allow authors to link to Ko-Fi or Patreon pages.
And if an author wants to make money later, just "filing off the serial number" (i.e. changing names) doesn't always work. It did for what then became "Fifty Shades of Grey", but not for all of them. For the newer issue of the project you mention, it's more complex -- because it involves Real Person Fiction -- made worse because it was RPF of a person, whose fandom had already lived through the fallout of a RPF fic. Had it simply been a fanfic of a random fictional work, the whole thing would likely have been a non-issue.
So, please don’t generalise, and please don’t accuse others of having malicious intent when the matter is much more nuanced.