When you see a bear dancing, you don't nitpick its choreographic decisions. Because the bear. is. dancing. Do you see? It's a bear. dancing.

DM style is a matter of taste. From another perspective, this feels like quite tidy DMing in terms of letting the players explore the systems in an early non-narrative context, just to understand the mechanics. Like a tutorial. The exotic mounts were a secret you could find if you paid attention - and their existence adds color to the world and implies that greater rewards can be found through leveling. They were too expensive, but you can use your skills to work around that. Failure can happen and might have consequences, but in this case you got away with it. The players will be more careful what they ask for in future, but they know hidden rewards might be found if they are cunning.

The DM taught the players a lot, added flavor to the world, and didn't wind up with L2/3 players having an overpowered mount - but also didn't let the players blow up the campaign in the first shop they walked into by letting them just go completely rogue. Although it offered hints that non heroic paths might be available, at a cost...

Which is pretty impressive for a dancing bear.

And besides, what's 'dumb' DMing for a human who knows that letting the game go off the rails is going to mean tossing out previously planned encounters and going digging in the DM guide to find the right table of prices, might be completely acceptable DMing for an LLM that has no idea what it's doing but can recall every stat block in the player handbook.