While the Federation’s laws target genetic manipulation specifically, the motivation behind them was an enduring fear of the one time they created a “superior” type of person who then became tyrants. Data certainly could be seen as superior to a human, so I’d say he (and moreso Lore, obviously) does fall within the spirit of the law.

Add in the fact that a Soong was involved in both creations, and Picard’s augment ban actually makes a bit more sense.