She absolutely is profiting from it.
When a game is "free" the publisher isn't just donating it for funzies. Either Epic pays them (Epic is spending money to get people to its platform) or the publisher is using the game to advertise other games, which has value to them.
Can the people advocating for AI art provide any examples of anything human-generated that is artistically interesting? I suspect not and that's a big part of why they're impressed with AI art.
Like, they'd probably say "The Mona Lisa" because it's well known to be Great Art, and then their AI can draw them in the style of the Mona Lisa, ergo it has generated Great Art.