To put it another way, nobody's ever sued Canon for making cameras which are used to take illegal photos, but if Canon suddenly started screening your photos to make sure they were acceptable per local laws or whatnot, they suddenly are actually a responsible party in the creation and distribution of whatever it is people use their cameras for.
Regulating it is as absurd as regulating Skyrim or a similar moddable game to prevent users from having it rough with elfs or whatever. It’s all corporate interests covering behind ethics, nothing more.
It recombined other people's images based on analysis of your drawing. That's all it does.
Is the whole being obtuse deliberate, or do you really not see how these two things are different?
At the same time... F that, I don't want Microsoft nannying me.