There was another issue where iTerm2 added AI functionality and then after some backlash allowed the ability to turn it off. If the additional features (which is why you would use iTerm2 in the first place) start making more and more problems it is starting to make more sense to use terminal.app or alternatives.
iTerm2 never enabled any AI features by default (it always required an OpenAPI key, which the user had to provide). The backlash was for including an AI related feature in the default build at all.
Following the backlash, I think they made it an optional plugin.
Wow -- as already posted, this is absolutely false. This is not at all what happened, the iterm2 folks are way more sensitive to their users' feelings than that.
You're right, but, as a user reading those release note for the first time, that's how it seemed. AI is being added? TO MY TERMINAL? Yes once I read it I understood it wasn't quite that bad, but the initial "Are you f*king kidding me?" feeling never left. AI. Next to my terminal. Please.