> After reviewing, we have identified intellectual property in [Game Name Here] which appears to belongs to one or more third parties. In particular, [Game Name Here] contains art assets generated by artificial intelligence that appears to be relying on copyrighted material owned by third parties. As the legal ownership of such AI-generated art is unclear, we cannot ship your game while it contains these AI-generated…
Sounds like a cop-out. They can't possibly verify that any content they're hosting isn't already copyrighted, let alone in a "murky copyright state"
I'm sure they mostly just don't want to wind up in court with a lawyer being able to say that they let [blatant example here] get published on their store. So long as they can credibly claim that there was no way for them to tell something was in an objectionable category, I'd imagine they're fine with it.
Their rules, if you're curious: https://partner.steamgames.com/steamdirect