VRoid Studio is a free 3D character maker developed by Pixiv. It allows users to easily create humanoid anime-style avatars through intuitive brush tools and sliders. The models can be exported directly as .vrm files, which are natively compatible with most major VTubing and virtual reality applications. Ready Player Me (Cross-Game Avatars)

If your goal is video production rather than gaming, these platforms are the industry leaders for generating digital humans : Free AI Avatar Generator and Online AI Maker - Canva

Often flagged as "malware" or "phishing" by antivirus software due to its unofficial nature.

While the tool is free, there are "hidden" workflows that pros use:

Blender is an open-source, completely free 3D creation suite. It supports the entirety of the 3D pipeline—modeling, rigging, animation, simulation, rendering, and motion tracking. The global community offers thousands of free avatar base meshes and rigging templates. VRoid Studio (Anime-Style 3D Avatars)