The $1bn deal will let fans generate videos and images of more than 200 Disney characters on ChatGPT and Sora.
The errors included getting dialogue wrong and incorrectly claiming a scene was set 100 years earlier than it was.
Parents and experts say gaming poses many of the same risks for kids as social media, and want them included.
Former staff at the Grand Theft Auto creator are seeking an employment tribunal over alleged “union-busting”.
Under the so-called pre-packaged Chapter 11 process, the main maker of its devices will take ownership of the firm.
The companies have been fined in the past over outages leaving customers unable to call emergency services.
The child was trying to watch Diary of a Wimpy Kid – but a film with “strong sex and sex references” played instead.
It comes after the government was urged to help close the UK tech sector’s gender gap in order to meet its ambitious AI goals.
When the partnership was unveiled in September the UK government said it would “shape the futures of millions of people”.