That is why telephone books and others things are not copyrightable. They are lists of facts. API's are lists of facts, a functional specification for use.
There are consequences if this stands and it will not be to our benefit as programmers, developers, designers, etc. Nor will it be to the benefit of society as a whole.
In other words, if it does feature the same selection and arrangement, it is a violation of copyright.
Your statement that APIs are not copyrightable is not true as well.
What if I create my own smart home server that can be a drop in replacement for some commercial product using just what I've gather from their public API? Is that infringement, when the underlying implementation is entirely my own?
It depends on how you create your server. If you go to their website, look at their API, and start typing identical code then that's not ok. It's pretty clearly copying. If you do black box testing and then write your own API that's fine. It's clearly not copying but a new original work.