When I try to remove the head of a person using Magic Editor, I get the message "Magic Editor can't complete this edit. Try a different edit." Also documented here:
https://www.androidauthority.com/google-photos-magic-editor-...I have no doubt Google could (and might) enforce a lot of these rules on the device, but they likely route it through the cloud if there's a new "exploit" that they want to block ASAP instead of waiting for the app to update.
This is an example of the reputational risk Google has to deal with that small startups don't. If some minor app lets you forge photos, it's not a headline. If an official Google app on billions of devices lets you do it, it's a hot topic.