They're a developer making a cutesy little nostalgia toy, not an artist. I'm sure they'd be ecstatic for you to donate a couple hundred for them to hire a professional humam?
In the interim, this works fine and looks better than what most developers can make themselves.
Personally speaking, I think ugly programmer art is better-looking than an AI icon. Even if it was a two-tone vector silhouette of a slice of bread, it would be more evocative and readable to me.
The app is theirs, and they should feel proud enough to make an original icon for it too. I agree with the parent, the AI-generated icon would be the first thing stopping me from spending $1.99 on this.