Hey there!
Sorry for any confusion that may have been caused by this situation on your side, allow me to update you on our decision after some amount of deliberation.
To put it simply: We were planning to let the other person's game slide as a one-off thing, not thinking that it would really matter much. However, after further discussion on the topic given this question, we have decided to return to our previous stance of fully banning any usage of AI from this jam and will be informing the other person of this change shortly.
While we are all for encouraging creativity, we have also begun considering that we would be willingly giving a platform to something we do not personally agree with, which would only invite more of the same to pop up in the future. Therefore, at the risk of sounding mean: We will be snipping this issue before it has time to grow by rectifying our previous lapse of judgement.
We apologize if this is not the answer you were hoping for, but please consider submitting a game that you can make purely with your own skills, or teaming up with someone instead of using AI. It would help bring the community together and potentially help you make more games in the future!