Microsoft did not just copy individual lines. They fed whole repositories into their model, ignoring the license (if it exists) even though they knew from the start that information generated by the model will be publicly available. Available usually out of context, but nonetheless - the scope of the input and intent are very clearly "everything" and "redistribution".

Just adding a filter/ML model to the output shouldn't matter. I dare you to build a Copilot clone trained from leaked internal Microsoft code and then trying to argue the output is a bit mixed up.

That is a clear violation imho.