We have not seen the Overton window at the mainstream Right in a very long time. At least not in White western Christian nations.
I completely understand you on the economic side and I have encountered similar things. One coworker of mine had never even heard of Austrian School economic theory until I brought it up on a business trip.
The root problem here is that we do not have Capitalism and have not had it in a long time. The conbination of a fiat monetary structure combined with the current crony element of capitalism (Including Government for sale) has forced people to attach to the far left side of economics.
Forgive me in advance for this long answer, hah...
Monetary structures are fiat by nature, and that's how they originated in the Near East. The problem isn't "fiat money", it's the interest, financial fees, privatization and profit-driving of banking instead of being a public utility to create and allocate money productively without speculation, interest bondage and financial fees, and polarization between debtors and creditors leading to debt deflation. This is the basic dynamic that has remained true throughout most of civilized history. Jesus was killed over proclaiming the Jubilee Year, an old Near Eastern tradition of debt cancellations to restore social harmony, and it's the same thing today except no one is talking about it. The Pharisees, their leader Hillel and the creditors who backed them killed Jesus essentially because he wanted to free people from systemic financial bondage.
You are right to say that we have not had capitalism for a long time. That's part of what Marx wrote about... capitalism was a revolutionary system because it would replace feudalism. Bankers, landlords, monopolists and kleptocrats were no longer to rule over societies, and eliminating them was a necessary prerequisite for industrial capitalism because otherwise there would be economic depression due to households', industries' and governments' revenues being siphoned off by economic rent and industrialism and progress wouldn't take off. This is what people don't get when they talk about Marx. What he didn't anticipate enough was the emergence of finance capitalism and neoliberalism, of the rentier class fighting back. To Marx, Patten, Adam Smith etc. a free market was a market "free from" rentiers so that industrial capitalism could take off in the next development of society. Then the Overton window would shift into debating how that stage should progress. Instead we have as I just said, a neo-feudalist reaction of JB Clarks, Friedrich Hayeks, Milton Friedmans, Paul Krugmans... either useful idiots or professional con men seeking to undo this progress and restore the socioeconomic structure of society to a kind of feudal stage.
And of course as you say, the state is complicit in this. And both Adam Smith, Karl Marx, and everyone else recognized this fact, that the state had always been a tool to formalize and legalize the power of what I'll call the rentier class over society - people who accumulated privilege and
unearned income through conquest, inheritance, finance or legislation. That's why they all wanted to either reform or dismantle the state. Every society is governed, but a 'state' is a particular kind of government.
Since you seem to be an Austrian adherent we probably won't agree on what we discuss... but at least we know of these issues. Most people have no idea.