Earlier quoted context omitted.
Bullshit. I made a new image using a computer program that I was legally licensed to use. The program might be Corel Draw. It might be Blah Blah Diffusion Pro Plus. Either way, I made the image and I own the copyright, unless some other contract was made between myself and the program's owner or my employer.
A machine operator does not own the copyright on the parts his machine stamps out even though he puts in inputs. GM's engineers can own the copyright on a car they design in CAD. If you put in creative inputs using a tool, it is copyrightable (a car's design). If all you did was say, give my XYZ widget (in this case 'give me a picture of a frog holding an umbrella under a rainbow') you only gave instructions for gene…
So long as I don't copy a previous, copyrighted image 'too much' (this is fuzzy and maybe should be quantified legally in our bright, digital future), I can claim copyright on the new image.
Since, so far, non-human things are not allowed to hold copyright, a human can claim copyright over works created by non-human things, that the human owns or controls. It's even easier to reason about if the human and non-human thing 'collaborate' on the final creative product. So, if I fiddle around with my inputs (prompts) into Super Diffusion Power Plus Gold Edition, then we (the software and I) collaborated. And I own the output that I chose (curated) as the best one.