The issue is the dev asked Valve for permission, so if they give the go ahead Nintendo has a case that valve condoned and allowed it.
If the dev used the open source tools it wouldn’t matter, they used the proprietary Nintendo tools that aren’t publicly available.
I mean anyone can use copyrighted material as inspiration for their work and it’s fair use and not a concern at all.
Is Ai only bad since it can do what a human does better/faster? If that’s that case, than they don’t actually have an issue with the fact it’s copyrighted, or I wouldn’t be able to use it for inspiration either.