It's definitely a fine needle to thread, but we shouldn't just give an official carte blanche for this stuff. An outright ban won't stop it, its true. And the enforcability of any laws we do manage to get passed is going to be...spotty, at best. But having some rules written down about what people are at least supposed to do is...well, it's something, at least. Gives us something to point to if us and our allies ever decide they need to...intervene. When we decide we need to intervene.
So, yeah, an outright ban will probably do more harm than good. The genie is already out of the bottle; we cannot stop people from doing this again. But we can push for changes to the language of already existing international law to include all sapient persons (a little future proofing never went wrong) and some consequences for using any sapient as slave-labor, depriving sapients of any rights, and some BIG consequences for the creation of sapient persons for that those purposes. Like, potentially nuclear consequences if we can find some Nuclear Powers to back us up. Worth noting is that we have just created our CyberSyn block--and that is a nice swath of territory we could push to have the full rights of personhood guaranteed for all sapients, both presently existing and those that will exist in the future. And, as I mentioned before, I think it is important that we ask the Lupus what they want out of all this and adjust our plans accordingly. I doubt they'll disagree with the broad strokes of all this but they will certainly have opinions about how they are helped now.