That is clearly overfitting due to unrepresentative training data.
The "issue" is a different one: that training data - IE, reality, has _unwanted_ biases in it, because reality is biased.
Producing images of men when prompting for "trash collecting workers" should not be much of a surprise: 99% of garbage collection/refuse is handled by men. I doubt most will consider this a "problem," because of one's own bias, nobody cares about women being represented for a "shitty" job.
But ask for picture of CEOs, and then act surprised when most images are of white men? Only outrage, when proportionally, CEO's are, on average, white men.
The "problem" arises when we use these tools to make decisions and further affect society - it has the obvious issue of further entrenching stereotypical associations.
This is not that. Asking DALLE for a bunch of football players, would expectedly produce a huddled group of black men. No issue, because the NFL are disproportionately black men. No outrage, either.
Asking DALLE for a group of criminals, likewise, produces a group of black men. Outage! Except statistically, this is not a surprise, as a disproportionate amount of criminals are black men.
The "problem" is with reality being used as training data. The "problem" is with our reality, not the tooling.
Except in the cases where these toolings are being used to affect society - the obvious example being insurance ML algorithms. et al - we should strive to fix the issues present in reality, not hide them with handicapped training data, and malformed inputs.