> But I assume it is illegal to create and distribute the images.

I very much so expect it to be illegal to distribute the images, of course (creating them, not so much).

But the illegality, in a sane world (and until 5 minutes ago) used to be attached to the person actually distributing them. If some student distributes fake sexualized images of their colleague, I very much expect the perpetrator to be punished by the law (and by the school, since we are at it).