Searching on chess-results for "960" tournaments played in 2021 gives the following:
68th PCA Chess 960 Tournament 24th Jan 2021 W23 D0 B21
Первенство Владимирской области по шахматам-960 (rapid) W25 D3 B25
Турнир по шахматам 960, посвящённый 78-летию со дня рождения 11-го чемпиона мира по шахматам Роберта Фишера (rapid) W20 D7 B22
Why this game does not end immediately as a draw by insufficient material?
There is no rule regarding ‘insufficient material’. What there is is a draw due to a ‘dead position’. This is defined in article 5.2.2 of the FIDE Laws of Chess:
5.2.2 The game is drawn when a position has arisen in which neither player can checkmate the opponent’s ...