There's a group of news readers who dislike CEO's and dislike AI. Many of these people have also heard of Duolingo. "CEO of [company you've heard of] makes an AI mistake" is a surefire way to get clicks.
The app is absolutely gamified, but I've never paid them a dollar, waste about 1.5 minutes a day ignoring ads, and in exchange for nothing I get moderately useful foreign language learning. The gamification keeps me at it, where past study approaches eventually petered out.
The use of AI in this and other tools is inevitable. The CEO certainly oversold it in his initial announcement, but the weird reaction of people stopping using the app because Due Lingo is going "AI first" seems inconsistent. Are people going to stop using Google, Meta, Microsoft, Amazon, and Nvidia because they're all-in on AI too?