How often are 3D scanners used for character and NPC design?

3D scans increase production time and costs, not the other way around.

They won’t replace artists. The artists are needed to retopo the high density meshes (the same that happens with motion captured animations) and to prepare these meshes with appropriate “loops” required for natural deformation when said meshes are skinned and animated.

You can make everything be a 70K+ poly character, but then when you place 12~14 of these characters on screen it’s already a million polygon skeletal meshes to render and animate every frame.
The result (for current gen consoles at least) out of that is you end up making a game that is a “corridor simulator” with just 2 or 3 characters on screen.
Unless you downgrade everything prior game release, right * cof * Ubi * cof * soft *

Remember that game, “The Order (some number)”?! Yep…