It absolutely can be if you let it get out of control. I still struggle with it in fact. It can cause emotional burnout, wreck your mental health, things like that. To be fair, even the "good" version of this gets weaponized to ignore causes that someone might not want to care about without "being a bad person" all the time. Think the "I have to prioritize my own mental health" types who only seem to have energy for issues that directly affect them. Again having limited emotional energy isn't the issue, being disingenuous about it is.
But that's not what this freak is talking about. What this freak is talking about amounts to "Empathy is reserved for the in-group. If it impedes our efforts or contradicts our dogma, then it's toxic empathy," basically.
If I'm reading what the artist said on Instagram correctly responding to a comment it's Legoshi from Beastars.