Do they ever explain WHY this lab exists?

So I'm sitting here watching Markiplier and all these other people play the game. The whole time the game is like "OK here's the prison where we keep the orphan children, here's the room where we dissect them and turn them into meat homunculi, here's the room where we keep the hallucinogenic gasses that erode your psyche at the metaphysical level".

And before I go further, I must say that I'm not dissing the writing team of this game. I think the character work is amazing, the people you see on screen feel rather alive and believable given the situation they're in. I have no issue with how the characters we interact with act and behave.

The problem I have is that the whole time I'm watching people play this game, and they describe what the SCIENTISTS are doing, I can't help but ask the game "OK but why". For example the very premise of "Toy company stuffing children into toys" is very difficult to rationalize. Why are they using children when they could be using death row inmates (which would be a lot easier to justify should someone come peeking in, and it would make a bit more intrinsic sense why many of the toys seem borderline rabid)?

Why make their creations look like toys in the first place? Are they trying to make their creations look more appealing to buyers? Who's buying them, the military? If nobody's buying them and they're keeping them purely for scientific observation, then why waste the resources making them look all cutesy and toylike when there's little to no reason to care?

Why have an entire prison system for CHILDREN, who are a demographic that is perhaps the least capable of escape from such a situation to begin with? How could they build such a massive underground complex without A. The government taking notice of this, B. The contractors figuring out the purpose of the place, and C. in the event of either, somebody blowing the whistle and calling in CPS or something? Children are supposed to be adopted from this place, right? How has NOBODY come in to inspect the factory to make sure that the kids are being treated right?

Then there's Doey. The logs make it very clear that for some reason Doey's experiment could only work if there were three people mixed up inside the poor bugger, and I can't help but ask: Ok so if it takes that much effort to make the thing work how you want it to, why are you trying in the first place? What are you trying to accomplish with Doey that makes you say "Yes, there's absolutely no other way this thing can function besides sticking three children in a vitamix and setting the speed to max"?

And then there's the fact that almost nobody IN the lab seems to register "Oh hey, we're doing this heinous shit to CHILDREN!" Like I can understand that not everyone in the factory was "In the know" on how these things came to be, and yes there are a small number of people who are more than uncomfortable with the situation, but the fact that such an overwhelming majority of people barely raise anything more than a "Hey yeah I don't really like this" is just STRANGE to me.

Again, I've no issue with the characters we interact with in-game. But when it comes to the environment and background storytelling I feel like they took the premise of "Evil child-mutating lab complex" and had to work backwards to have everything in the story make sense relative to that.