Any car wash that touches the car, with anything, will induce swirls/scratches. If you don't think it does, you are just not looking hard enough or in the right light. Doesn't matter if they use microfiber or whatever else, they are absolutely the worst thing you could ever do to your cars finish. I shudder when I drive past our local fancy "big" car wash and see really nice vehicles going through it, especially if they are black. Coworker has a huge new black Dodge Ram that he takes through it every other day and the paint looks horrendous... He is so proud he gets it washed every other day and it looks 'nice', but all I see is the damage he has caused to the clearcoat on the thing. Haha
The only 'safe' car wash is touchless, or you do it yourself properly. But not everyone cares as much about maintaining the finish as much, so obviously it comes down to each person and the level of care you want to put into it.
I will take my beater/dog car through a car wash as I don't care about it, but my other two cars get washed by me only or laser wash if need be (usually not, unless winter to get salt off). I recently got a snow-foam tool for my power washer and such, so I will be using that in winter now for quick, touchless washes to get the salt off when weather permits.
At the end of the day, if you want to baby the paint, you need to do it yourself or go touchless. No other options!