This might be a good thing
If there's an app that can make clothed women appear naked, then you can't trust ANY pictures of naked women. All the women who wish they hadn't sent naked selfies to that ex boyfriend, or otherwise have real naked pics of themselves out on the internet they wish weren't out there have plausible deniability that those pics are fake.
Pretty much would end "revenue porn" and hackers getting hold of someone's pics from blackmailing them into sending them more. They have no hold on the victims any longer if a naked pic of her can be trivially faked and everyone knows it.