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Strange. When I saw the preview picture all I could think of was “Kenny”
I haven’t paid attention to if they kept doing this, but at least for season 1 of The Mandalorian most of the sets were created in Unreal and displayed on high resolution LED walls that surrounded most of the stage and ceiling and were synchronized to camera movement. It’s an interesting improvement over green screen and can drastically reduce costs over constructing physical sets or shooting on location. It does reduce job opportunities for some of the crew, though.
On one hand, it also adding jobs for other people. Is it 1:1 hard to say, but atleast unlike the built sets that are garbage or costly to store, the content can be stored and reused relatively easily.
