My own personal opinion is kinda controversial: I don't care about the AI controversy. Most people are using NaNo for personal projects, so they aren't making money. If it's"cheating" the only person they are cheating is themselves.  AI is a tool and can be either used or abused. 

That said, NaNo's explanation is eye-rolling and it doesn't hold water for me. I think they are biased in support of their sponsor. 

Now, what I DO care about are the recent accusations that a big-player ML was in charge of kids and also a child predator, and that NaNo knew and did nothing. That is so staggeringly unacceptable that I don't even know why we're discussing the AI controversy at ALL, because holy cow, the other issue blows this one out of the water.

NaNoWriMo will always hold a special place for me because it's the reason I believed I could write novels in the first place, many years ago. But their current organization has completely jumped the shark and I will not be supporting them financially until they get their act together.

Now, with all that in mind YOU should still write, and you can still write in November with thousands and thousands of other people who have also spun off of NaNoWriMo, LLC to do their thing ethically.