To be clear, a piece of code that creates a copy of some GPL code is not a problem by itself. However, it's misrepresented as something the tool "generated" rather than code belonging to an existing human actor, without appropriate attribution and licensing info.
Does this mean that if you picked up GPL code from gnu.org and put it in your public repo, you're in violation of the GPL for illegitimately licensing that code to gihub under a non-GPL-compatible license? Maybe!
Even if said code was licensed to Github for sharing with other users (e.g. displaying it when another user browses the page), that doesn't mean that the same permission is given to all other users under the same conditions. Or allows them extra liberties, like using said code for purposes other than "sharing with other github service users".
This license includes the right to do things like copy it to our database and make backups; show it to you and other users; parse it into a search index or otherwise analyze it on our servers; share it with other users; and perform it, in case Your Content is something like music or video.
This license does not grant GitHub the right to sell Your Content. [...]
So, it's not clear if they could charge for Copilot, given that last line, but indexing, analysis, and sharing with other users are all included.