If it's a craft festival, you should pay one of the crafts people to craft a poster. Any stench of AI (and in particular, the weirdness of an AI generated punk-ish poster) for a craft event makes me think it's a scam because I know for sure they had contacts of people that could've done a better job, and been supported while doing it... which is the moral pitch of the event. Even if the craft was basketmaking or something totally non-poster-related, use a close-cropped photo of a basket as the background or something. You've got artistic people around you. The outcome is going to be better, universally. (I don't really want to debate this honestly. We can agree to disagree if you think this isn't universally applicable.)

But I'm fine with the beer festival phoning it in. I guess my only issue with the in-the-wild poster example you found is it does look... bland and just aestetically bad. Your example AI poster styles would be a huge improvement! I can't say they're like, impressive in anyway or winning any awards since they're also bland, but aestetically they hold up and IMO, actually communicate the info better than the ez-slop original.

Maybe to put it another way: if it was 2015, and an craft festival and a beer festival both used the same incredibly lame looking Word template for posters, I'd have the exact same opinion.