The opposite is true.
With LLM tools now you can easily and quickly write stories, transforming quick plot outlines into fully written scenes in 1/10th or 1/100th the time it would have taken previously. Similarly, with image generation tools you can easily iterate on character looks, poses, environment art, scene composition, potentially even animations.
You could probably automate the process of creating an AVN already with tools that are available today. It actually wouldn't be all that hard. Your biggest timesink would be on playtesting, but that can actually be handled by volunteers or lower-skilled QA people.
Yep you're right, and that's the current state of development for the script side, which can actually be streamlined. An additional thing I think happened with this game, and with a lot of other game devs approximately two years ago, was that a lot of them spent time fucking around with AI and scene generation to spit out updates faster. Ultimately, what I think happened was that they couldn't get it to work nearly to the same degree and produce the same quality, so they had no choice but to revert back to making the content in the traditional manner. However, now with a 6-12 month+ delay, they needed to come up with excuses to keep things alive in their communities. I have no definitive evidence of this, yet tons of devs had this slump in production around that same time. It's just a theory for why multiple devs started slacking all around the same time on many major games.
Why would this matter to you? If they streamline production via AI? That would be great, no? Sure for production and content of the viewer and enjoyer if released quicker with the same quality, but they don't want you to know that they're making a chapter of content in 4 minutes, and sitting on the content for 5 months while they milk donations feigning that they're "workin' hard on the content!"
I also have another theory with this game in particular, I sometimes get the itch that they have content made out to Ch. 10+ already made, cataloged, and they know they have a cash cow that people keep donating to every month, and they don't release on a time-scale, but on a revenue-scale.
"Cool we made $35k since the last release?"
"F95 is sharpening their pitchforks? and revenue is declining Month over Month?"
"Release Ch. 7."
"Oh, look at that... we're making money again..."