I agree entirely with your second gif. But i think one of the authoritarian(
i know the lines got fuzzy on authoritarianism after trump won ) countries will be first before the west. Trying to coddle citizens into having more kids wont work if that tech comes out .
Sooner or later russia will realize its running out of meatshields. Or china will realize it needs a consumer base. And the baby factories are the natural result.
And if one country can magical spawn 1 billion people in a year , the end result will be a human arms race(literally) where non authoritarian countries realize they dont have enough scientists or doctors or military engineers to compete so they will need their own factories.