This is so surprising coming from Tidal - their entire business was built on high-fidelity, crediting artists, and paying them more

It seems consistent to me. I'm not sure if suno represents the state of the art, but the output I've heard from there seems to be noticeably lower fidelity than a skilled amateur recording. In many cases, it's still more than good enough. But Tidal advertises things like "lossless", which is a much higher fidelity threshold than anything suno can produce, at least that I've heard. Crediting artists might be taken to mean crediting human artists whose creative output is represented by the music. Sending royalties to "AI musicians" displaces some of those potential payments.