Earlier quoted context omitted.
I think that there is a strong argument that to be truly transformative (in a copyright moral/legal sense), the work must have been altered by human hands/mind , not purely or mainly by an automated process. So find/replace and AI is out, but reinterpreting and reformulating by human endeavour is in. I do wonder whether that will become accepted case law, assuming something like that is argued in the NYT suit.
“The cat saw the dog” “Bathed in the soft hues of twilight, the sleek feline, with its fur a tapestry of midnight shades, beheld an approaching canine companion. A symphony of amber streetlights cast gentle poles of warmth upon the cobblestone path, as the cat’s entered eyes, glinting with subtle mischief, looked into the form of the oncoming dog- a creature of boundless enthusiasm and a coat adorned with a kaleidosc…
Likewise "write a novel in the style of Terry Pratchett"