I think there is an important difference here.

It can create something like DX ball easy, because its already there, the AI already knows what it is

It can not create a game on the same level as DX ball, something new i mean, not a mechanic added on top, a real new game that feels like a game that would have come out the same year as DX ball

AI is great at executing the task, but it can not for its life (or for the anthropic reputation, it seems to care more about that) create something new from scratch, it can not do game design thats not just change the speed of the ball or the paddle color. Probably a limitation thats there from the start