In my understanding your reading is that users uploading code that they don't own the copyright to, but otherwise have the right to copy through a license, are in violation with the ToS in general.
My reading is that the license grant only applies to "Your Content" as defined in the ToS, and otherwise users are free to upload code with permissive license and it _does not grant_ additional licenses to Github.
> Certainly the GitHub TOS grants them some common-sense ability to copy the code you upload so that they can usefully host it. Can you point to the portion that allows them to use it for Copilot?
> Because I'm pretty sure it doesn't. Section D4:
> > This license does not grant GitHub the right to sell Your Content. It also does not grant GitHub the right to otherwise distribute or use Your Content outside of our provision of the Service...
> The “Service” refers to the applications, software, products, and services provided by GitHub, including any Beta Previews.
[1] https://docs.github.com/en/github/site-policy/github-terms-o...