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AI-generated stories rated better quality than human-written ones, study finds
(www.theguardian.com)
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I think a lot of it depends on the model and the amount of context it has. LLMs usually get worse with time because they are running out of context, or they don't have a good summarization of the story at large. For story-writing, it's best to have a full outline planned and set up as its own Markdown doc, along with critiques on things you think don't make sense or just don't like as a plot device. Then, start a new session with each section, keeping it in a Markdown doc as it goes. Some sort of character doc is probably a good idea, too. Give it as much reference material as possible.
It's just like planning features for code. You don't just say "gimme a story like blah". You have to set it up like writers write movies.