It’s really hard to get these things right: if you don’t attempt to influence the model at all, the nature of the imagery that these systems are being trained on skews towards stereotype, because a lot of our imagery is biased and stereotypical. It seems perfectly reasonable to say that generated imagery should attempt to not lean into stereotypes and show a diverse set of people.
In this case it fails because it is not using broader historical and social context and it is not nuanced enough to be flexible about how it obtains the diversity- if you asked it to generate some WW2 American soldiers, you could rightfully include other ethnicities and genders than just white men, but it would have to be specific about their roles, uniforms, etc.
(Note: I work at Google, but not on this, and just my opinions)