It has been going on since 1965 (as I have a picture of a Catholic college youth group during a Mass).
When Chaput was Archbishop in Colorado, he sent out a public letter as chief liturgist of the archdiocese. His comment was that there are no instructions in the GIRM as to how the laity are to hold their hands, period. His response was that it was not forbidden nor required; that those who desired to hold hands could do so, those who did not want to were fine, and that both sides should react with charity towards the other side. That includes pushing someone who does not wish to hold hands, to do so, and includes those who choose to not do so to refrain from criticizing others.
Those who range from not being comfortable doing so to those who outright despise it will come up with all sorts of permutations as to how it is not allowed. Most who do hold hands simply do so (that is, they don’t spend time defending it).
There seem to be areas in which it is more common than other areas, and even within a diocese, there appear to be parishes where it is more common, and parishes where it is less common, or mostly non-existent.
Rome unquestionably has been aware of the matter for decades, has gone through several permutations of the GIRM and has issued letters restricting, correcting and revising various rubrics of the Mass, and has seen fit to not make any ruling on the matter.
There have been many and numerous threads herein on the matter.
That is about as close to a catechetical answer as I think can be given. It has been around for at least 53 years, and it is still causing grief among some of the laity, and it is still widely practiced.
and yes, I have repeatedly heard from some who comment that they were forced to hold hands with someone else. There is no excuse for that - it is very plainly a lack of charity on the part of the one insisting to hold hands.
From those who prefer to hold hands, I heard one wag comment “The prayer is Our Father, not My Father - holding hands is a sign of unity”. True or not, Rome has been silent, so it is neither prescribed nor prohibited. Just the same as holding one’s hands palms together, and fingers either extended or interlaced is neither prescribed nor prohibited - but has a longer history.