I believe they intentionally hobbled it in this respect for "safety" (iow to keep themselves out of a scandal when someone asks it to create "President Biden accepting Bribes" or whatnot...)
Certainly far simple diffusion models trained including faces do just fine at creating photorealistic faces.
Preventing Harmful Generations
We’ve limited the ability for DALL·E 2 to generate violent,
hate, or adult images. By removing the most explicit content
from the training data, we minimized DALL·E 2’s exposure to
these concepts. We also used advanced techniques to prevent
photorealistic generations of real individuals’ faces,
including those of public figures.