"We found that about 0.1% of the time, the suggestion may contain some snippets that are verbatim from the training set" If it's spitting out verbatim code 0.1% of the time, surely it's spitting out copied code where only trivial things are different at a much higher rate. Trivial things meaning swapped order where order isn't important, variable/function names, equivalent ops like +=1 vs ++, etc. Surely it's launder…
Whether or not the result is a license violation is tricky legal question. As always, IANAL.