Hello!
Yes, I use AI quite regularly to create photos of myself wearing items. I explained how to do it here on the forum in December 2025 
Photos avec IA pour ? Contre ? Quid de Vinted avec? - #7 par Lucile
And my usage hasn’t changed since that comment 
Yes, I’ve sometimes had listings hidden. I waited a few days, then deleted and relisted the item, and had no problems. 