I think we're over here in our armchairs weirdly assuming that GitHub doesn't have any lawyers working for them. I think they know they're legally in the clear on CoPilot.
I'm not at all a lawyer, but in my opinion we observe that the non-automated version of AI-generated works (the act of making art and prose in the style of an existing copyright work based on the artist's observation of that work) is not illegal. The only thing that AI introduces is automation.
What I can't understand is people feel locked into Github because of the social features. To me they seem the least important part of Github, particularly with so many OSS projects running communities on Discord or Slack.
Hmm...Automated Inference? Automatic Infringement? Maybe we can make a nice backronym out of this.