I obviously haven't tried doing this, but I'm willing to bet that most image generating AIs, and especially the unrestricted open source ones, can be coaxed/promted to generate stuff like this, unless specific additional protection algorithms are at work.
I mean...why would they not be able to create something like that?
If they 'know' how children look like, and they 'know' what genitals look like, they will be able to diffuse from that information, because they of course have no ethics or morals. Those, we add with many special filters and commands.
This smells like that company holding a grudge against the other company, or them just trying to enter the news-coverage.