Having seen what it produces posted as "solutions" in QA, it's code doesn't always (or indeed often) compile, let alone run and do the actual job.
I suspect this is a result of the code source it uses: if you process a large amount of student homework as actual code then what you produce will be student homework.
And to get really useful stuff out, you have to specify exactly what you need pretty accurately in the first place - which is effectively the code you want to use anyway!
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I definitely agree with your point about the need for accurate specifications. The ultimate example of that being a futile exercise would be the assembler code I often have to write for embedding on custom hardware