This sounds just like a typical startup or small consultancy drunk on Ruby gems and codegen (scaffolding) back in the Rails heyday.
People who don’t yet have the maturity for the responsibility of their roles, thinking that merely adopting a new technology will make up for not taking care of the processes and the people.
Bingo. The founders have no maturity, responsibility and believe they "made it" because they got somewhere AI. Now they're pushing back against AI because they can't understand the app anymore.
Oh, look, you've normalized deviance. All of these things are screaming red flags, the house is burning down around you.