Estate agents are also doing it; making interiors of houses look very different to how they really are.

This should really be illegal

Seems like false advertising.

Yes and even if all they do is ask it to stage an empty room picture with furniture and decorations it will make improvements like adding a doorway to a room that doesn’t exist.

The worst I've seen changed the view out a window from an alley to a private garden. Most also add natural light that isn't possible, and in some cases I'm convinced the generate image is depicting the space as larger than it actually is, with furniture and spaces that wouldn't fit in reality

I once heard about a company that specialized in making furniture about 10% smaller than normal for use in show rooms to make the spaces look larger. Not surprised they do it with AI if they can.

Wide angle lenses have been a thing in real estate photography since forever, but you would always have the reference of the furniture to ground your perception. Having furniture be slightly downsized is diabolical.

This is a thing in show homes on new-build estates in the UK. British houses are often tiny.