I personally think that the first is definitely better. I feel like the second would work on a slightly different kinda theme and setting. The typesetting could be better tho...
The best way I can describe my feelings towards the second cover is that it belongs as an asset(or still a cover) for an indie analog horror game, but I feel that it's way too hard to get the feel of such a game in pure written form so it just wouldn't fit for me. The dissonance between the cover and the writing(as I imagine the feeling it could give) are incongruous in my opinion.
The first one feels more straightforward horror novel and would fit better.
AI-generated art does have a really good style of horror, and I'm pretty sure the Happy Meat Farms ARG uses AI-generated imagery and it makes for really disturbing scenes in their videos, but again I just think having such an art style on the cover when the writing can't really express the same kind of disturbance the images puts me off.
Then again I'm just one guy speaking out of my ass trying to explain the weird emotions I feel when I compare the two images provided lmao. Other people probably feel completely different and have no idea what the fuck I'm on about. I've also never read your works, so I'm basing this on how I feel horror writing in general makes me feel. For all I know you could somehow manage to write in a way that fits the particular style of AI-generated horror imagery.
Anyways I have no idea what the fuck I just wrote, so take from it what you will lmfao