You can't "generate" CSAM. CSAM definitionally had to be about abuse of real children. It's still bad and should be illegal but lumping them together is bad.
People get upset when states try to legislate that 3D printer manufacturers should detect and prevent people trying to make gun parts, but somehow this is different.
The tooling doesn't matter, it's the nature of the images they were generating and distributing that was the problem.