My concern with involuntary institutionalization is it's unlikely to be humane in the long run since this is a part of the population that the general public doesn't care about.
Also you get on a slippery slope of poor farms and vagrancy laws like in the 19th and early 20th century. If you were unemployed you could get arrested in a lot of US states.
I'd rather deal with homeless drug addicts on the street than deal with the threat that in the future, AI could take my and 90% of everyone else's job and leave me destitute, and as punishment for the crime of being poor I could be sent to some prison camp to do menial labor for the rest of my life.
But whatever, it's already coming. With the Grants Pass Supreme Court decision, cities and states can now jail people for sleeping in public. Louisiana passed a law this year that puts people in prison for an involuntary amount of time as a punishment for homeless loitering type offenses, and while there's technically a way out in the form of a work program, that will probably not work out for a lot of them, and also people with previous convictions for things like drugs aren't eligible so it's effectively a life sentence.
Sure, let's take the poor and needy and lock them in un-airconditioned bunk houses and use them in chicken slaughterhouses for $1/hour loaded into an account that gets garnished for fines they'll never ever be able to pay back.
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So many lives that could be saved and useful to society as a whole are left to rot.
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Saving people or helping them isn't ever the justification for these things. It's get rid of them because they are nuisances.