Gengineering is generally approved in all quality-of-life improvements. Tukkatukka, being a foodstuff designed to aid terraforming, is in the definitive green tick zone.
Augments are definite grey areas. They fall loosely under the category of service animals and the CRC keeps a rigid check on their welfare.
Engineered Life Forms, or ELFs, who exhibit cogniscence are the ones who cause trouble. Companies who make them are considered responsible for their welfare and upkeep.
Huge amounts of paperwork are required. The CRC has to generate identification and ensure their comfort and maintain their rights. It’s a huge Galactic Expenditure and almost a heartbreaking waste of Time and effort as many ELFs are designed to be short-lived.
And if a company knew it was making cogniscent ELFs, then it faces enormous penalties for purposely creating slaves. And slavery is most definitely illegal.
Small wonder that companies like Wave of the Future, once the game is up, rely on creating a paper snowstorm to try and save their collective butts.