She has not broken any laws nor done anything scummy; what she has done is studied the system and hacked it to her ends: a true hacker in the HN sense of the word.
Now, I hate AI slop as much as anyone can hate it, but if society is so insensitive to actual quality that it will reward slop to the tune of a million dollars, the problem lies with that, not her.
And to her credit, it is not like she is one-shotting books with a single prompt: she has a structured process starting from a human outline and ideas, plus human review at the end.