>>86376592I mean it's all pretty simple
1. Creating lore "completes" the character design. This is more of a non-corpo thing but indies typically have an idea in mind for what they want to look like that goes through a dozen iterations before they finally settle on it and they'll have design elements that each came about because of a reason. Having a backstory to tie it all together just makes it more fun.
2. Lore is mostly for fans. Sure a streamer may have fun creating it, but they wouldn't bother creating it if the audience didn't like that kinda thing. Both parties know that it's not going to be something they stick to at the end of the day, but lore gives you a basis for ideas for stories, art, animations, and all kinds of other fan works.