Earlier quoted context omitted.
if the actual text of the code isn't the same or obviously derivative, copyright doesn't apply at all.
What does derivative mean here? Because IMO it means that the existing work was used as input. So if you used a LLM and it was trained on the existing work, that's a derivative work. If you rot13 encode something as input, so you can't personally read it, and then a device decides to rot13 on it again and output it, that's a derivative work.
I'm not sure how you square the circle of "it's alright to use the LLM to write code, unless the code is a rewrite of an open source project to change its license".