Nah, I think they're right.
Did you read the pr?
It rejects anything that's AI assisted code, documentation or otherwise. Not just vibe coded apps. If flat hub can enforce that, which they won't be able to, because that rejects an entire section of the software industry who uses modern professional tools (do they just ban everyone that uses jetbrain IDEs or visual Studio or visual Studio code with any form of text completion? Which are all ML (AI) based have been long before llms were a thing)?
If they manage to actually enforce that and do that then flat hub is essentially dead.