This extension is supported by Babylon’s glTF loader. Note that this extension is for discrete LODs and will progressively load each one, but it is not the same as progressively updating an existing mesh. If your goal is to get faster to first render, then this should help a lot.
I haven’t personally used that tool, but if it is able to create a glTF with only the MSFT_lod extension, then it should work. I don’t know of any other tools that does this automatically. I’ve created a few manually and it wasn’t very difficult.
The extension itself is relatively simple if you want to create something for your own purposes.