Well it is actually complicated. It appears the tiny studio ran out of time/budget trying to get usable CGI, so they did some diffusion real-quick as an act of desperation, and got slop as a result.
Not everyone is exactly up to speed on diffusion, either. I bet they Googled and used the first video diffusion service they found, and hence got bad results, but its also fair to criticize them for publishing them. They either didnt bother to proof the output, or they did and knowingly published anyway.
Im not sure anyone is the villain here. But I dont like people leaning into outrage culture, and trying to paint it as black-and-white.