I don't think it's panic, I think it's dread and political fatigue.
After recent years, many just brace for the worst possible outcome of an election, with whatever their worst outcome is and many frame even their ideal group winning still ending in things still getting worse going forward. Even with the best of intent, many see the system incentivises much of the worst.
I live in an area that's been only Reform councillors since they were all UKIP, had a Reform mayor last year. I've had unfruitful conversations with a couple of them trying to explain how immigration laws have changed in the last 10-20 years with one convinced it was only recently through pressure from people like them that non-EU, non-Commonwealth migrants can't vote; we had an incident during one of the lockdowns where three of the councillors went into a hotel carpark to film into their premises on the local rumours around refugees and had to have it slowly explained to them that hotels are business, their grounds are private property, and them being councillors doesn't change that - they posted it online like they were proud of it. I haven't been able to get a clear definition of the 'foreign workers' they intend to tax more beyond non-British passport holders...which leaves some confusion for multinationals.
That said, they're still the most visible party in the area, even if it's just tactical showing up at veterans' events for the photo op or funding an additional rubbish and bulky pick up around the New Year. Where I am, the Reform and Independent candidates are actually acting as part of the community, whereas the only thing I've seen of Labour beyond 5 or so pamphlets is the candidate and a couple of others standing in a busy road like they've forgotten pavements exist and oblivious to issues with traffic they were causing. When I saw him at our local elections, he was kinda demeaning - he was asked to slow down as he was talking really fast and he just laughed and continued, largely acted like he was trying to speed through to get away from us plebs. The Tory candidate is mainly arguing with people online and not seen the Lib Dems or Greens at all. I get why people vote Reform when they're more engaged with the community than others - it's not even policies much of the time, it's preferring someone they know to someone who only shows up (or doesn't and is just a name) for elections.
I'm voting Independent. I had a laugh earlier with my husband about what would happen if everyone got so fed up with the party system that we all voted Independent and ended up with 650 Independent MPs. My husband is voting tactically though we're largely in a safe seat - we saw what happened to many safe seats last time - but I'm just a little tired of fighting tactics at this point.