The reason why most AAA devs do not pursue development of games focused on physics is because it's damn hard to find a good gameplay loop to them. Breth of the Wild was above everything else experimental on its nature, they tried to see what they could do with emergent gameplay. The result was a masterpiece, but boy this game could have ended being a complete failure and bombed hard due to clunky controls and bad design
Remember most AAA devs do not pursue big changes in gameplay design, they want to try copy and pasted gameplay experiences that were already tested and proven to be successful, like... is any argument about Cybperunk not being just a sci-fi GTA?
It's hard to tell your stakeholders you're doing a hundred of millions budget game that yo have no idea if costumers will actually like since its mostly new. As there was no big example of highly successful title with gameplay focused on physics before BOTW hence the AAA studios were simply seeing no reason to bet their money in such dangerous pursuit
After BOTW came out unsurprisingly Ubisoft released their Zelda Clone, Immortal Fenyx Rising, rather quickly. A charming game that was mildly fun to play, although its lack of criativity was jarring. This means AAA studios can pursue games with emergent gameplay focused on physics if they want to, they don't do that because they have no fucking clue of how create a fun game that will sell millions without an already proved formula and are not willing to dump money for 10 years straight experimenting blindingly until they came out with something that is good enough to release and sell millions.
