Drive Isolation Transformers were mostly associated with DC drives and older Current Source or 6 step AC inverters, both of which have pretty much gone by the wayside now. Those drive technologies created a lot of common mode noise and the shielded isolation transformer attenuated it so that it didn't get back onto the supply. As a general rule, modern PWM drives don't have that problem to begin with, so the isolation is no longer necessary. Isolation transformers do virtually nothing for harmonics, it tends to pass right through them.
That said, when you REALLY want to do something about harmonics in PWM inverters, one of the ways is to use 12 pulse or better yet, 18 pulse front ends. Those drives then do once again need transformers to create the Delta-Y phase shifts going into the 2 (12 pulse) or 3 (18 pulse) sets of rectifiers on the VFD's front end. The isolation issue is just part of the design and the harmonics are reduced by virtue of the phase shift that comes from using them, but again, it isn't the isolation itself that mitigates the harmonics.
You typically see reactors as a low-cost method of mitigating harmonics on basic 6 pulse inverters. They help, but by themselves they are rarely the entire solution. Usually they need to be combined with tuned caps as part of an LC filter.