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This is true to an extent, but when you look at the history of the moral majority (new right movement) and what actually unified the right, it should give you some context about how the Dems aren't really doing themselves any favors by distancing themselves from progressive values. The right were always willing to offer some concessions to what were once considered fringe voters (and now is essentially the base of the Republican party) in exchange for their vote.
I say this as someone who is almost always willing to vote blue no matter who, continuously catering to the wealthy and failing to follow through on promises is going to be the nail in the coffin for Democrats (and possibly American democracy in general). Midterms will probably be their last chance to get it right (if we're even allowed to vote) and they are definitely not off to a good start by giving the cold shoulder to Mamdani.
It's very hard to battle voter apathy and "both sides" disinformation when Democrats will not even acknowledge that much of what progressives are asking for is pretty reasonable. Establishment Dems seem to believe once they're accused of cultural marxism (which btw is a term that was popularized by the same people that created the moral majority/new right) they will lose centrists voters that might help them gain an edge over the competition. Meanwhile they seem to be oblivious to all the support on the left that they're absolutely hemorrhaging.
Some of that support is going to the right (and those are the people Gavin Newsome seemed really be worried about reaching with his podcast that "reached across the aisle" to some absolutely vile people), but a big chunk is being lost to people who just no longer see a point in bothering to vote for an establishment that seems to intentionally exclude and dismiss them.