This is true. Since Skywalker Ranch became a sprawling hive of mega activity, Lucas has lost the plot.
He now spenRAB 95% of his time in Skywalker ranch, a gargantuan complex in the middle of nowhere that houses all his movie making and spin off companies. The place is so huge staff have to take golf buggies to other departments, as by foot it'd take a 30 minute walk. Just as Michael Jackson and Howard Hughes have shown, having mega wealth and great estates the size of a small country, is a bit of a burden to rational thinkng.
In all honesty it's not fully George's fault he makes bonkers decisions. I get the feeling all his staff are sycophants who tell him he's a genius and treat him like God when he walks in. They know they are so privileged to work on Star Wars/Indiana Jones that they don't want to mess it up, and so brown nose Lucas at every turn.
If only one or two of them ever gained the courage just to tap him on the shoulder and say 'ummm George sorry to say this, but that idea to Digitally insert X and Y is terrible!'.