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There are software tools made specifically for staging (and de-staging!) real estate photos. I don't know if they're using off-the-shelf image models or not, but they have capabilities like restricting changes to specific regions of the image which aren't available in services like ChatGPT.

(De-staging is a particularly neat trick - if a property still has some of the current tenant's belongings in it, an AI model can remove those items to show what the room would look like empty.)

The listings I saw with AI staging usually alternated photos, 1 photo unstaged, the next photo staged.

Which meant you could toggle between the staged and unstaged photo. I didn’t notice any warping or distortion.

Yeah. With CAD models, every single trick I have tried to make photo mock-ups with an AI image-to-image conversion, whether using a line art or canny edge detector or just a shaded source object, has seen the AI ultimately ignore the cues in some generations, no matter what I do, and I would expect it to work a lot better with room photography.