Congratulations to the winners!!
I am sorry to see that there was so much controversy at the end of this camp.
@STAFF I do think genre contests as suggested by @ratscout are a great idea. Webtoons does this for their contests and it encourages a wide breadth of series in their premium weekly section, rather than being disproportionately skewed towards many of the same types of series.
As for @drac, all I have to say is that this is a contest. I've submitted to a fair number of writing/poetry contests when I was younger, the old-fashioned type where you have to mail in your submission (usually along with a check), and the rules are extremely strict. If you format your submission wrong in any way (e.g. wrong font, wrong spacing, wrong margins, name/address in the wrong place), you are automatically disqualified. That's how contests are.
On the flip side, this means that if you read contest rules very carefully and adhere to them well, you are already ahead of the competition!! 
(Chaparral poetry contest rules, for reference: https://redrockwriters.org/adult_chaparral_poetry_contest_rules)
Tapas could probably be more explicit about what content they consider NSFW or not appropriate for the contest, if they are indeed disqualifying people for this reason. Reader's Digest has a good example of this (https://www.rd.com/magazine/poetry-contest-rules/ - see instruction #3)
Lastly, for the question about the prize money, please refer to the rules:
[The finalists] will win these prize slots and each receive $500 plus a Tapas Premium publishing deal
I am an editorial pick finalist from Writer's Camp #2. Please note that the wording says you will receive prize money PLUS be offered a publishing deal. These two things are separate from each other. You will receive the prize money regardless of whether you accept the publishing deal or not, and I can confirm that this is what happened. The prize money is not contingent upon the publishing deal. You are also free to decline the publishing deal and just take the prize money if you like.
Obviously, if you do sign a publishing deal, you are expected to finish the story at some point. That's kind of the whole point! 