It really doesn't matter though.

> Is a small indie dev "dodgy" if they use AI to unblock a tricky C# problem so they can actually finish their game?

No amount of framing (unless written into law) would stop small indie devs from doing this. AI is just too efficient, making too much sense economically. People who are willing to starve for their ideology is always the minority.

Even artisans who build hand-made wooden furniture use power tools today. The tools that make economical sense will prevail one way or another.