This perfectly sums up the main issue with generative AI and AI in general.
It exploits laziness.
Sure, they could have gone to the Graphic Design faculty, but that would have meant actually having to work, setting up a competition, finding judges, figuring out proper compensation/creditation, it would mess with the students study plans, you would need the approval from the GD faculty and the affected classe's teachers.
All of the above is not lazy, and ChatGPT is lazy.
So instead of the GD faculty having a design printed and used, and the engineering students getting a meaningful sticker, the GD students lost an opportunity for a cool project, and the engineering students got a crappy sticker.
Sigh....