Assuming not everyone at Nanowrimo is actually malicious, they've fallen straight into the techbro stake pit set by the meaningless term "AI", and so have most of the complainers.
"AI" means what it always has, as an industry term: "we are selling you something using the buzzword AI". Literally nothing else.
You can see how this functions as a rhetorical shield because literally all the objections to the Nanowrimo policy are against wholesale computer generation of novel-length texts and a human passing them off as having been authored, and everybody knows it, but their preemptive defence is to hide behind "well Actually, I don't see anything wrong with for example Grammarly uwu", a lying weasel stance enabled by everyone using the meaningless term "AI" instead of calling out the actual, specific problem.
You'd think we'd seen this play out across enough representative microcosms by now for people to wise up about capitulating to making their arguments about "AI".