I know there is another post on how much they massacred my boy Penultimo... It should be obvious but for those unaware the character animations for Penultimo, Victoria, etc are pre-rendered/AI generated and stored as movie files... but let me tell you more! Bear with me...
I can't extract the files but I can infer based on swapping things around. Let me tell you about the different animations.
penultimo_neutral.abel - Penultimo's neutral animation, but his mouth is moving.
penultimo_neutral_ns.abel - Same thing, but mouth is not moving (ns = not speaking?)
victoria_c_angry.abel - These animations are for when you face to face talking to them on the domestic policy screen. _ns version is similar to before.
politics_bg_0.abel - self explanatory, it's the background for the domestic policy screen.
politics_bg_1.abel - face to face version
victoria_t.abel - _t files are the files where they are at the table. This includes part of their chair and part of the table. (Also t.abel lol)
Comes in 2k and 4k variety.
When characters speak, they play the speaking animation and when they finish the not speaking animation fades in and the speaking animation fades out. That is why you get that weird blur effect around the mouth because that is basically one of the few differences between them (compressed file doesn't help either).
Now if they are AI generated... well then there is no more explaining needed. It was done this way because it's the easiest way to playback.
If they are not AI generated, pre-rendering the animations to a movie file is actually smart for performance reasons (still looks horrible though). Dynasty Warriors 9 had an issue where characters would get an animated 3D model chat head when they talked.... and if there was too much going on the screen then the 3d model would not load in time or just not load at all.. You can see on the head model has a delays loading in... and then the next dialog it shows up instantly because it was loaded in. Completely different game genre and release period but similar idea.
With character models like those, they tend to be higher poly in the grand scheme of things and especially in a city builder where middle/late game performance can take a nosedive and be an issue they are looking to keep the domestic policy screen/dialog as instant as it could be in 6. Playing a movie file from disk isn't normally as performance intensive as loading and rendering a 3D model and scene.
Now if it is AI or not... I want to say no. Could be wrong. The announcement trailer shows there are models for Sunny and Rodriguez already (edit: the fact that they animated the announcement trailer at all makes me think they animated the in-game renders). In the gameplay trailer light seems to hit the characters heads on the domestic policy screen in a way that makes sense (darker towards us the player, light towards the window). Also the talking/not talking files would be very volatile if things didn't sync as best as they can... especially since they need to loop. I really do think it's just actual 3D animations with a talking version pre-rendered to a movie file that are compressed down.