I think that this is a whole bunch of bulshit. Life is all about recursive self improvement, that's the whole game and it always was.
However, most new feedback loops are dysfunctional.
If they improved so much, they should show off their amazing new products instead of charting how much (potentially) junk code their engineers/AI are outputing.
i think it is OK to allow recursive self improvement, but we need to be careful and make sure it is not tail recursion