I was there two years ago in July and found the town extremely disappointing.
The main canal area was overwhelmed by the crowds and instagram photo chasers, specifically. Even at 10:00 at night the line for gelato was 30 people deep, although it was fantastic. In three nights, we had two frankly awful meals in the main part of town at highly reviewed restaurants and a decent one at a restaurant in the hills above town.
The bike path was dangerously crowded and we actually saw an ambulance hauling off two cyclists that collided with each other. Then a guy outside the train station tried to yank my watch off my wrist. The 4* resort we stayed at had a dj blasting techno music outside of our window until 10:00 at night despite the fact that there was no-one even out there listening for several hours.
We actually talked with the hotel concierge (who had lived there 20 years) about how puzzled we were be the overall experience and she was very frank that the town has suffered from over-tourism since the pandemic and it becoming a hot issue among the locals. She specifically said that the town was a hub on the drug smuggling route through Europe and this had increased petty crime substantially. Ironically, we met a young gentlemen a few months later in Stockholm who was born in Annecy and he admitted his family was also leaving for these same reasons.
While I do not know what the solution is, I would not return.