On the other hand, I'm impressed that a company is owning up to the problem. Is it a dumb problem to have? Definitely. Are they the only ones to have it? Almost certainly not.
People are going to use the tools at their disposal, and they aren't all going to learn their tools at a high level. Think of every insane misuse of Excel you've ever heard of, for instance.
IT has the choice in this case to mitigate, or limit the access to the tools. Choosing mitigation prevents the growth of shadow IT and helps ensure that IT remains a trusted partner and not an obstacle to be worked around. This reflects well on the company, especially if they then go and provide better training to their users as well.
Yeah: I can usually tell from public information when a company has problems like this, and that makes me disinclined to want to work for them. Seeing how they deal with those problems, though? … Well, in this case, it shows that the company doesn't know how to deal with these problems properly, and thinks ChatGPT is appropriate for write-ups, so I still might not want to work there – but I might bother interviewing there, just to check how deep these problems go. (If they're just a case of "they didn't know better, but they're happy to learn", then I might actually take the job offer: an environment where others are willing to learn without fear of losing face is an environment where I can learn without worrying about that either.)