LLMs can't create anything. They aggregate, distill, rearrange, etc. but those have always been borderline plagiarism. Sampling in music had similar controversy 40 years ago, but only barely escaped judgement when it was parody-like. I'd consider this a parody.

People are such blind consumers sometimes that they forget what it takes to make an original. Even worse is that the reviews at the time were mixed and calling Papers Please "low effort SJW nonsense". We had no idea how much worse it would get!