Earlier quoted context omitted.
Citation needed. Whether AI output can fall under copyright at all is still up for debate - with some early rulings indicating that the fact that you prompted the AI does not automatically grant you authorship. Even if it does, it hasn't been settled yet what the impact of your AI having been trained on copyrighted material is on its output. You can make a not-completely-unreasonable argument that AI inference output…
This is not how law works. Stop pretending that you’re a lawyer. You do not “always assume the worst”. Stop giving legal advice. You’re very clearly a developer in over his head. Law is not an engineering problem. Legislation is not a technical specification. Christ.
You don't have a license because it's what all the cool kids are doing, you have one in case shit goes sideways and someone decides to try and ruin your day. You do, in fact, have to assume the worst.
The "nuke" here is some litigious company -- let's call them Patent Troll Rebranded (PTR) -- discovers that the LLM reproduced large amounts of their copyrighted code. Or it claims to have discovered it. They have large amounts of money and lawyers to fight it out in court and you are a relatively shoestring language foundation.
Either you have to unwind years of development to remove the offending code or you're spending six figures or more to defend yourself in court, all because you didn't bother to anticipate things that are anticipatable.