Something is screwy, that's for sure.

There's no way they didn't expect that particular use of their product. Even if it was their first day on Earth, they should have learned from what happened with That Other AI Dite a while back. And if they didn't know about that then they shouldn't be in business, because that's a big cautionary tale right from their industry.

So they knew, and they're either really incompetent and didn't plan for how they would handle it, or they knew and wanted it to happen.

Maybe something changed on their end that led them to have to get rid of it when they'd planned to allow it? Maybe. But I have my doubts since they're using OpenAI and OpenAI's content policy is pretty clear.