As technical qualms were solved and many other capability issues with AI have been solved, the continual heel digging and goal posting by group 2 has started to just feel more akin to a religious stance than something based on any specific fact. There is no version of AI that they want to see, they will oppose it on moral(-ish) grounds on sight, etc.
AI has real issues, but like you, observing this re-adjustment in realtime has been really interesting, especially as it seems to come from people I share 99% overlap in interest and politics with, but who hate AI like they do.
It also feels akin to de-radicalizing MAGA or something. The rejection or idea that they are wrong causes a whole worldview to collapse in something akin to ego death, so instead of facing that possibility they just insist they are right.