I don't get it, that seems like standard fare for an R-rated movie? And then it seems like some complained because they decided to start editing it down to a PG-13 movie?
Essentially, from my understanding, there was a data leak they never commented on, they instituted a poorly made content filter without saying anything. The filter frequently has false positives and negatives, someone discovered they trained the game using content the filter was designed to block, meaning the ai itself would frequently output filter triggering stuff, more people found out their private unpublished stories were being read by third parties after a job ad and the stories were posted on 4Chan, people recognized stories they wrote that had triggered the filter that were posted, and then they started instituting no warning bans.
I might have missed something, but that's the gist of it.
Also, before and while all this was going on, the quality of the AI's output has been steadily dropping to the point where NovelAI.net now generates what's in many ways better writing.
That's GPT-J-6B, to be clear. A 6-billion-parameter model is producing better output than a 300 billion parameter model, because of what I can only assume to be sheer incompetence on AI Dungeon's part. I've also used the raw GPT-3 API, and it does better at writing than either. In other words: Doing nothing would have been better than whatever they've been doing.