He says the GEN AI part to refer to any ai that generates assets that appear in the final game, so art, music, code, etc. He mentions code specifically because so many people asked him and it was a special case where you really can't tell. And your 'technically' doesn't apply because the first thing he says is "No Gen AI". (don't worry, I get it. I am very technical as well and definitely fall into the "well actually" nerd category.) Just don't use AI if you can avoid it, and especially don't generate final assets with it.
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That clear things up. Thanks for your input. I asked the forum OP (Catgg64) and his question is about textures that doesn't pop up in the development, so that definitely impacts the final game results lol. I'm not an programmer as of now (trying to be) and don't understand too much about this, but it seems like the Game Jam host is very strict about AI use. Better off not use AI at all.