There was no copyright on ANSI Art; people screen-captured it and used The Draw or another ANSI editor to modify it.
If ANSI art was "allegedly in the public domain", then people who screen-captured, modified, and redistributed it were pirates, no matter the amount of youthful naïvete.
(The legal frameworks that allowed computer systems to be exempt from copyright restrictions, if they were just making copies in the ordinary course of transmitting things around computer networks, did not exist until the turn of the 21st century. Under U.K. law, for example, the way that the WWW worked was technically a massive violation of copyright until The Copyright and Related Rights Regulations 2003 came along.)
The law was not different. People's attitudes were.