I've got a lot of friends who are artists so I'm very familiar with the stigma over AI-driven art, but I see it as a tool like any other. How it's used is what's really important - sometimes, like with this game - you have an idea for a project that exceeds your capabilities, or where you lack the resources to to hire outside artists to get the job done.
It's pretty clear from the way you've put the voiceover and art to work that you're using generative AI for lack of better options; not to cut costs like when a large scale production does it. Far as I'm concerned, you can't get into a much better use case for responsible use of AI then small projects like Lockdown.
I'll absolutely be coming back to see chapter one (and the rest of the game, as it releases), the gameplay is distinctive since Qix is a relatively obscure title in the history of gaming, and the core concepts of the narrative are intriguing.