At my previous game-dev-company job we ended up splitting things up into:

1. Code - Git

2. WIP art, shared assets (logos, marketing materials, etc) - Google Drive (because things are often changing, getting passed around, etc)

3. Finished assets (PSD files you're done with, or you think you're done with) - SVN (because we wanted a log of who contributed to what, wanted artists to be able to pick up where someone else left off; having a log of who made changes to a given PSD)

4. Assets rendered out to PNG to include in the app bundle/publish to the static file servers - Git (because those files never changed after being published so the git history wasn't polluted with unneeded files)

I've also used LFS, which is... a fine workaround, but still not great. Users who don't have it configured can still commit binary blobs; users who don't have it configured will clone files incorrectly; if the LFS server is slow, unavailable, unreliable, then the system starts to behave oddly; you need a Git server that supports it.

It was a huge hassle to manage; having a system like this would have been a godsend at that company, and if I still worked there I would be spending all day importing our codebase and assets into it to see how well it works.

what happens if WIP stuff has rapid shifts or changes? art direction changes on the product level, etc? or even something as simple as an asset designer quits or get sick for a while

SVN makes sense cuz it's done and dusted, but I could see the Drive gettin real messy real fast if things change a lot