I think they were hoping to lean into the uncanny valley of AI art to cause a sense of imbalance/discomfort to fit the whole secret invasion theme. And of course save a boatload of money along the way.
I'm not necessarily against it as a concept 'cause I think art will survive AI as it survived digital painting, photography, and loads of other revolutions before. But it really is kind of a slap in the face to the artists that got Marvel where it is today.
I liked it. They used the issues of AI generated images to their advantage. Like the flickering, which everyone is trying fight with, really showed that skrulls can be anyone anywhere. As you said it shows the uncertainty and chaos which is happening