Even if the code is licensed under an open source license, in most cases it requires users to attribute the original author, while in some cases derivative work must be licensed under the same license too.
GitHub Copilot use the code without honoring these obligations.
Does moving code between a company's data centres count as distribution?
Heck doesn't merely hosting the files count as distribution?
GitHub doesn't pohobit mirroring repos/developing a fork from someone else's codebases.
The original author didn't grant GitHub a license to use their code, but their code may be used for training the model.
In the early days (months after public release not beta), it would literally give you code stolen from someone's repo, sometimes with credentials (security risk) and project specific stuff. That means because you took code verbatim to the naked eye you would be held liable for license violation.