I see the point (though I'd also say they're arguing it poorly, and that it's a departure from the point in their initial comments; note my comment is also not an endorsement of it). OP said that the LLM vendors should face legal problems for making the image, but the person they supplied it to was not tricked by its fraudulent nature, therefore the LLM vendor did not commit the fraud. Ostensibly, that is the dishonor of the person who prompted the model to create the fraudulent work.