Okay guys I think I found a fix. I've been working on this issue since the beginning of October and suspected it to be a OneDrive issue, which I honestly think it is. I can't guarantee if it is for the rest of you, but I'm certain that was the issue for me. I had some issues with my OneDrive syncing and because the Sims 4 folder was stored in there, I assumed that's why my sims weren't doing their actions and completely unresponsive. Which made sense.
For those of you dealing with this issue and you are on Windows, I would recommend checking your OneDrive to see if there's any syncing issues/if you need to log into the account, things like that. If there's not any, I would HIGHLY suggest creating a new user (create a new account if needed, cause I had to do that bc I forgot my previous account password which was the reason for the syncing issues), then reinstall the game on that new folder and test it out with a fresh save.
Now, before you do ANY of this PLEASE make sure to BACKUP all your sims files that way you don't lose them. I'm talking your mods, saves, AND tray folder. I would hate for you guys to lose anything. After you do that, reinstall on a fresh new user and run it with no mods nothing to see if it works. I followed these steps and now my game is working again. My Sims are picking up the babies, they're listening to my interactions and actually doing them, the time is going, and so far it's been an hour of it working. If y'all have any questions plz hit me.
Also I would recommend turning off OneDrive for future purposes. I did some research and found that it causes some issues especially if you play with mods, so yeah see what you could do about that. Right now I have it still hooked up to OneDrive until I can figure out how to move the files for my desktop, so even if you use it should still be fine as login as you test it on another user. Sorry for the short essay but it's been a heck of a journey trying to figure out what the issue was!
(If you're a Mac user please try replicating the steps that I outlined to your best ability)