Web developers create custom modules. Having the code editor in the design manager to assist with coding makes sense.
Where it does not make sense is in the web page editor when the designer goes to set the styles for a module.
Developers think through what styling to allow or not in the modules. This allows us to create consistency throughout a website.
The people using your CMS front end for web and landing pages are not developers. They add layouts and content to the page. They don’t know how to code. They don’t realize that modules are used in many places throughout the website not this single instance they are mucking with. Why on earth would you expose the code in your front-end and cause these headaches for everyone?
I highly recommend you keep the AI Code assistant in the Design Manager where developers code and remove it from the WebPages UI where non-technical people are adding content.