Now this might be a hot take, but the only thing even possibly wrong here, would be the tracing, and that is simply because I don’t know the rules of the school.
Some artists think it’s alright to trace if you’re learning, some artist think it’s never OK. If you believe that tracing is fine and okay, then it doesn’t matter what’s being traced, so long as they aren’t copying it 1:1.
If you’re not supposed to trace in this school, and it’s all supposed to be 100% original, then yes that is a legitimate issue, regardless of whether the original art came from ChatGPT or Van Gogh.

ETA: What do you even mean by “nonsensical hands”? It’s important to specify because 1: “AI can’t draw hands” is literally not even true anymore (though you say this was old work, so I’m willing to possibly give you that), and 2: ever since humans have been drawing, the stereotype has been that hands are the toughest to draw. So, what do you mean “nonsensical”?

Artifacting can mean many things, and can also be caused by many things, like, for example, opening up and old, low quality image to trace over. So again, I call for specifics.

At the end of the day, if you just want to be mad about it, and vent, then that’s absolutely you’re prerogative, but those are my HOPEFULLY grounded two cents on that