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Théâtre D'opéra Spatial was highly modified in Photoshop, didn't help that case.

Any 'de minimis' changes will probably lead to rejection.

That might be a slightly over-simplistic explanation.

"The Copyright Office agreed that the parts of the painting that Allen had altered with Adobe constituted original work. However, it maintained that other parts generated by AI could not be copyrighted. In other words: Allen could copyright parts of the painting, but not the whole thing."

https://www.wired.com/story/ai-art-copyright-matthew-allen/

For now, it seems the issue is still being disputed

This seems like such a dumb approach to maintain a completely broken system!

Not a lawyer, suspect you either need to make significant creative transformations, or generate something that's trademark protected.

Nope.