I read that article and feel your interpretation is very misleading/wrong.
The Guardian article makes it clear prior to those denials that those higher-up appear to not to care how accurate it is and appear to be making a conscious choice to accept the fact it is highly flawed on the basis that it might kill some of whom they would legitimately claim as valid targets.
It's clear from the operational details discussed in the article the critical target number is largely number of kills, regardless of whether they are any actual material threat, or not.
Cull predominantly the male population and their family members, not assassinate active threats is the overall impression I got of the Israeli strategy.
I must add that anyone claiming the use of AI and inference models in this way is in anyway justifiable needs to seek help. The claim of 90% accuracy is almost certainly over claiming by over 100%.