I saw this when the story broke last week. Other than the cash grab aspect of these contests (which may be the only real reason for their existence), it's a mystery to me why they even have awards for AI generated images. The winner is the person who can best write prompts for the AI system? And that is somehow construed as practicing photography? Bizarre.
On a somewhat related note, I see that people have started complaining that Instagram is flagging their non-AI images as 'Made with AI' because of some metadata stored by Adobe when one uses Photoshop's AI-based tools, like generative fill. It seems that nobody really understands where the line should be drawn at this point. The whole thing is insane.