I feel like there has to be more to this LATE NIGHT WITH THE DEVIL situation. The movie clearly had a design department staffed with actual people, and the images in question apparently only appear a few times, and briefly. That leads me to believe it was not a budgetary consideration, but something else that has yet to be fully illuminated. I don't particularly like it, and I don't begrudge anyone if it's a bridge too far, but I intend to see the movie.
The stuff Peter Jackson has been doing in terms of using A.I. to "restore" older film is more troubling to me. His Beatles documentary, GET BACK, probably doesn't contain a singe frame that wasn't touched by A.I. in some way, and he's letting other filmmakers like James Cameron use the technology to "restore" their library (the recent 4K releases of ALIENS, THE ABYSS, and TRUE LIES went through this process). Do the results look "good" in most of these cases? I think so, yes. But we're not really seeing the image as it was actually captured by the camera. It's revisionism, with the program literally inventing new "detail" in the frame that wasn't captured, and while most people might not notice it, it's there.