The problem for John Camack was I think he was on both sides of the table writing code - so he wrote the code at Zenimax & re-wrote the code at Oculus. From a layman's perspective, he very well could have been "copying". Normally when you design clean room implementations, you use different people and make sure that the people who write the code never see the prior written code and the person giving the spec doesn't…
That seems like it is saying that Zenimax owns not only the code Carmack wrote while he was there, but also the knowledge and experience he gained while working there.
Or more specifically, if Zenimax's claims are correct, while he was working on company time and equipment.