Blocking any AI-generated visuals and audio for INDIE projects is really weird, especially considering these are game jam projects that are completely non-profit works (all of them have to have free playable versions for play during the game jam).
It is one thing to say not to use it in commercial work (a for-profit game or something) which is expected. It is another to set the same standard for non-profit freeware indie work.
I despise any and all use of AI by multi-billion multi-national corporations that seek to replace workers with AI for profit.
However, I personally have no issues with indies and freeware projects using AI so long as they are upfront about it and disclose it properly.