I agree. The new model isn't very good. The main issues I have with it are that it tends to break immersion, saying stuff like "BREAKING_BAD_PATTERNS" or talking about "breaking bad patterns" for no given reason whatsoever and has no context to the roleplay at hand. They also tend to speak like this all the time:
John nods, "I think we've got it under control," he said "but watch your back just in case."
Even if the initial message has asterisk roleplay such as this, characters added to that thread will still talk like the above example, asterisks have to be incorporated a LOT into the initial message (at least from what I observed) in order for the new characters to RP like that.
The new model isn't that bad though, as it is able to portray fictional characters almost perfectly. I don't really use the AI Story Generator much, I only use the AI Character Chat and occasionally the image generator. I'm saying this based on what I've observed from there.
You know you can edit that out, right? People like you make such a big deal about the AI doing stuff that you don't want it to do... but even the dev himself literally says that if the AI doesn't act the way that you want it to, you can edit the AI's messages. If you edit the messages enough, the AI will act how you want it to.
You can also make use of the custom writing instructions as well as the character reminder note.
Bottom line, don't overreact, just edit the messages. Not that hard.
Use a website to make the image you want transparent.