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I've been trying out the new PS AI as of April 2024. The new resolution and higher quality image that comes in from prompts is great. Although I still get a lot of crazy stuff, random people, animals, trains, etc., that don't make any sense in the context asked for. Some of the new imagery is a bit heavy on the "dot" patterns. I assume this is from Stable Diffusion rendering? Overall though, much better in some regards.
However, my big problem with the new AI is the plain old generative fill. (no prompt) It does not seem to blend trees, flowers, rocks, etc., near as well as the previous version. I get haze, artifiacts, smears, mangled details, etc., far more than in the other version.
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I am experiencing similar outputs. Instead of just erasing an object I got single flowers where the object used to be.
Switching to the regular Photoshop version it's worked just fine.