This is a hotly debated, contested topic, and it has yet to be resolved. There is uncertainty about which way you should go. Everyone has an opinion concerning this question.
What we do know is ever since the emergence of TikTok, Instagram has never been the same. They have probably been having long discussions on how to cope with the competitor. The answer was to create Instagram Reels. Instagram had to do something. Otherwise, they would have fallen into trouble. We don’t know whether this decision was the right call or not.
But Instagram did create Instagram Reels as an external response to the stimulus of competition. It wasn’t their fault to try and mitigate the risk from their hands.