Generative Ai not labeled and Adobe doesnt care? Additional work or modifications on AI works?

It is no longer necessary to include "Generative AI" in the titles or keywords; however it is necessary to tick the AI checkbox when submitting assets. This change was made about 6 months ago. If a contributor "forgets" to check the box, an automatic algorithm will mark it as an AI asset, though it sometimes gets it wrong and marks some non-AI illustrations as AI. 

If you use PS Generative Fill to alter a background it's not necessary to declare the asset as AI; however if you add significant elements to the frame using AI, you must declare it as AI.

It is a shame that Ai images get through that are not labeled as such. But I suppose it can happen given that a moderators looks at hundreds of images per day and a contributor either mistakenly or intentionally neglects to correctly label an asset. 

As for your question, as I understand it, if generative fill or generative fill are used to edit an image, either to remove or improve something, without actually adding anything new, and it is not the predominant subject of the asset, it does not need to be labeled as AI. In the case as you describe it, however, it appears you are changing the asset fairly dramatically by generating an entirely new and unique background, and should therefore be labeled as AI. At least in my opinion, without actually seeing the asset in question.

Maybe another contributor has a direct link to an official word on the subject from Adobe, but I'm not aware of one myself.