I don't care how the art was made. I absolutely love it. As someone said in another comment, it looks like one of those hidden objects games and even old point and click adventures. It takes me right back to my pre-teen years and it's awesome. Even if it's AI assisted (which seems to be). This is exactly what this new technology should be used for. You're an independent developer who wants to populate your game with something different from the standard Daz3d models everyone uses but you lack digital painting skills or the budget to hire a professional illustrator. What you do have is this amazing tool which can turn your photos into beautiful art and, suddenly, you can make your game a reality, just like you wanted.
The only problem with photo based art is that you're limited to the poses you can find with the person you're using, so there's not much variety. I guess that's why the dev decided to go for the standard "static poses moving in front of a background" style, which is also good.
We're just months away from having AI tools that let us change poses and expressions in photos in a way that's not unsettling. That and, hopefully, models specifically trained to create porn content will probably lead to a new wave of machine learning generated adult entertainment. Exciting (and weird) times are just around the corner.