The Dremel-like tool is actually the tool in. CNC machining center.
A CNC can typically turn the tool at 8,000 RPM to 15,000 RPM, and has 3 to 5 axis positioning control down to 0.0002” ±.
With the tool turning at these types of speeds, the machine has multiple jets of coolant flooding the tool to keep it cool and flush the chips out of the working area.
Thus most CNC machining centers have big enclosures surrounding the actual working area. If they didn’t, the operator work be bathed in chips and coolant.
Injection molding doesn’t look as neat as CNC machining, but it can have much higher rates of production and lower costs per piece made.