Putting the insulation inside a light fixture is a very bad idea. This was probably invented by some US electricians/contractors/light fixture makers that had absolutely zero idea about heat transfer.
Think about this first. The US construction code requires the ceiling space around high-heat-generating fixtures to be cleared, i.e. no insulation on top of ceiling lights, unless the fixtures have a high heat-resistant rate. There is a reason for it. The temperature increases when the heat concentrates in a small space. Heat from light bulb needs to be dissipated into the air to prevent burning/melting.
Then some people put insulation both on top and inside the fixtures, adjacent to bulbs. That becomes a perfect heat trap. I’ve seen melted bulb bases, burned wires, and melted fiberglass thanks to that.
There is sadly a lot of misuses of batt insulation by homeowners/contractors. In this case, it becomes an obstacle when repairing the fixtures or replacing the bulbs. In construction, adding obstacles means adding risks. Moreover, this is considered a mod. Adding mods to light fixtures means taking all responsibility for any potential damage.
Inhaling fiberglass is a common cause of lung problems in construction. And with this insulation stick around, you might need to wear face-mask and eye-protection for just replacing a bulb.
What to do instead: use low-heat bulbs, use correct-sized bulbs, keep the space on top of the fixtures cleared, choose a well-designed fixture.