Now that you mention it, I hear it used more often to describe narrative/novels (a plot where everything is nice and nothing bad happens), and I've heard it in the context of game design, but maybe less on the game critique end.
I think a lot about it when I see indie folks discussing the development process for their game, when they might present... like, say Animal Crossing, as an alpha build to their test audience, and the feedback they get in the discord is that the loan to Tom Nook is no fun, because it's too much work to earn the money back. So they remove that feature, and you get the house for free. And someone else says they don't like getting randomized villagers, and that it takes too long to get who you want, so they let you choose villagers from a menu. Et cetera, until you're left with everything about Animal Crossing in menus. Makes it more cozy, if you don't have to stress out about anything. And it isn't a low-effort mobile game or anything, just a passionate person taking advice from folks who liked their game enough to play early builds of it.
Some of the indie (super indie, like single-person itch.io developers) get really salty about this, because it gets lumped in with accessibility discussion, and it can be frustrating from a game design perspective when someone is shouting down the thing they think makes the game fun to play. I'm not sure such requests are creeping into, say, Marvelous games, but I did see some for Coral Island. I always wondered if it happened to The Good Life... when it came out, there were a ton of folks (probably backers) who played it immediately and gave it really short reviews that said things like "super comfy" and "SWERY never misses!", but later reviews that discussed gameplay seemed disappointed that there wasn't more going on.
Which is not to say frictionless games are necessarily bad, or there's not a place for them (obviously those folks loved The Good Life, and I didn't play the early builds of Coral Island, so maybe some of the stuff they toned down really was no fun). But I always wonder if there are game play trade-offs that make a game more "cozy", whereas I really like tedious busywork, lol. But that's a me problem.