I can't tell if the graphics are AI-generated or if they're made to look like AI on purpose. If it isn't AI, then it's very well made, beautiful and fits the tone and theme of the game well. If it is AI, however, it would be very disappointing. This game feels like a cry for help during these times. It has soul, and the use of AI would destroy a large part of this game's humanity.
No it would not. You state a question then answer it yourself. I listened to an AI generated story about Kirby in the Warhammer 40k Universe. It was inspirational and it had soul, you disagreeing doesn't change that reality, no matter how you state your opinion. I have heard your exact regressive words from people who told me digital art didn't have soul. Stop trying to pigeon hold what is art.