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Clair Obscur: Expedition 33 loses Game of the Year from the Indie Game Awards
(www.xda-developers.com)
This is a most excellent place for technology news and articles.
It's a gray zone in my opinion.
The final art will still be based on the AI (read: stolen) art. Where do you draw the line between a unique piece of art and copying existing art?
God forbid anyone uses anyone else's art as a reference. /s
The answer to your question is whether they drew the art/wrote the code themselves. Ie. Not tracing or just renaming variables.
You're making assumptions both of the developers' workflow, and of their AI models.
Rivers don't flow up the mountain, let's not kid ourselves that there is "innocent" AI usage in this context.