HAAAAAAAANKK!!! YOU DONT PLAY AS A MATURE ADULT IN THIS GAME! ITS A TRAP! HAAAAAAAAAAAAAAAANKKKKKKKK!!!!!!
Why?
That's a question for the dev. I don't know why they decided to go this route considering they're using AI to generate the images and the changes needed would only be slight but that's just how it is.
I don't think it's AI because those are pixel art.
It's definitely at least a ai artstyle that has been pixelated.