In this case, the magazine created fake journalists with fake bios and used them.in the bylines. I would think that's a kind of fraud and definitely hurts the magazine's trustworthiness. The article goes into other publications that have also used fake journalists with their bylines in AI produced articles. I think if they were more transparent- say, labeling an article "AI created content" - it wouldn't be as much of an issue.

This also doesn't address errors in the AI produced articles (which could be solved by having a real life fair checker or editor).