While it may not be totally sensible, using AI imagery to depict something that never happened definitely does decrease trust. The exact same effect can be seen happening in sports as they added gambling on top. People are losing faith that the truth hasn’t been manipulated because there is ample opportunity to break trust and insert fiction.
But what cause that decrease to happen is by presenting false things as accurate. There will always be someone snooping around and if it’s an obvious false thing then people will make lots of noise about it, the evidence is this post thread.
It doesn’t matter if they actually cheated at sports or if the image is real. The threat of it being untrustworthy is actively eroding trust.