CSAM is by definition limited to real imageries and cannot be generated. "Generative CSAM" is like "false true information".

The thing about criticisms that Grok generates "CSAM" images, as well as many similar claims using that acronym, are actually more likely to be intentional mislabeling intending to refer to anime images. Advocates groups with British links love to do it, supposedly to avoid having to name states and/or ethnicity associated with it. which is frustrating because this is how BS like in GP is allowed to exist.

As for deepfakes... 100% they allow it, with weak plausible suggestion feature to decline it. They know that nobody will allow it if given an option. Same deal as Middle Eastern bot spams on Twitter: taking actual measures is against whatever their goals.