To me, Dall-E seems analogous to a film production team that produces visual imagery reflecting a script written by a screenwriter. By the above reasoning, would that team would be producing "bullshit"? I think most people would think not, because the goal isn't to communicate objective truth about the world, rather something plausible, interesting, entertaining, etc. (unless it is a documentary).

I also think distinguishing bullshit from lying depends heavily on internal mental thoughts, goals, and intentions. Isn't talking about Dall-E this way personification and ascribing some level of consciousness?