So, I've seen people use what looks like traced official subeta art used on pet profiles, along with official art with slight recolors to the eyes, etc. Does it count as breaking rules if one uses the official art? I didn't see them say anything about it on the recent homepage post and want to be sure.

Problem is solved, thanks :D

you should file a ticket about the rules

Making overlays using official Subeta art or altering official Subeta art for pets or profiles is perfectly fine, as LONG as they are only being sold for SP! You cannot make recolored overlays like this and try to sell them for USD/Any real currency.

Also you cannot manipulate people by claiming the art is original!