I meant from a moral perspective. I'm aware that it is illegal in some jurisdictions but this would almost certainly not be considered "commercial use" in the context of likeness (unless the author uses the generated picture in an ad, etc.).

If Grok is charging a fee to do this, then it's "commercial use".

I highly doubt so. Paid software like Photoshop has been used to generate fake pictures for ages and yet they are legal. It's how the generated pictures are used that matters.