I think you're being overly pessimistic about the chance this exists in some form at nearly every mid-to-large size software company.
It doesn't take a company policy for an ai-enabled engineer to start absolutely spewing slop. But it's instantly felt by whatever process exists downstream.
I think there's still a significant quantity of engineers who value the output of AI, but at the same time put the effort in to avoid situations like what the author is describing. Reviewing code, writing/generating appropriate tests (and reviewing those too). The secret is those are the good ones. These are the ones you SHOULD promote, laud, and set as examples. The rest should be made examples of and be held accountable.
Id hope my usages of AI are along these lines. I'm sure I'm failing at some of the points, and always trying to improve.
Regardless, this is a made up story.
If author cared about code and processes he'd not be working in an environment that doesn't.
On top of that, it's never a good policy to wash laundry in public.
Thus imho this story is made up and this never happened.