Fable Studios created an AI-generated episode of South Park... during a Hollywood strike over AI.

I'm not so sure. There were some bits where there was simply stage directions or general descriptions of things happening, like "(Mett Porker makes some racist jokes)", with the characters just standing there staring instead of doing what was described. That looks bad, but suggests to me that very little human touch-up was done to the output. Those would have been obvious and easy for a human to fix if there was a human touch intervening any of this.

I wouldn't be surprised if the AI was provided with a paragraph or so of prompting telling it what sort of episode to generate, and then it just let fly and we got this.