Let's just say I've tested around this.

Copyright: Zero guardrails on anything related to third-party IP, which lets you do some funny things. (I'm including a picture/prompt of Super Mario, Mickey Mouse, and Bugs Bunny partying at a nightclub in the blog post)

Moderation: It has far fewer guardrails and any other Google AI product I've tried, and it is possible to prompt engineer some images that would definitely be considered NSFW by most people — more NSFW than actual NSFW image generators (a post-generation filter will catch most nudity, however). I have not had any rejections for more innocous queries that could be misinterpreted as being NSFW.