Earlier quoted context omitted.
There's a difference between building a product using open source and not contributing back, and copying licensed code into your own codebase. One is rude and the other is straight up illegal.
The code doesn't exist in Copilot. The instructions for how to recreate the code does. On a very pedantic level those are not the same, but it probably is enough to argue that the product is 100% legal. It is still quite rude to do that though.
If I copy the code line by line with my eyes and keyboard, then the code briefly doesn't exist, but the instructions to recreate it do. Copying it is then a two-phase process: first I read the code, then I type it in. It is clear that I'm allowed to look at the code, so it's the action of typing it in that violates copyright. In the same way, distributing Copilot doesn't necessarily break copyright, but using it may.