Personally, I think you are right distrusting MS ( as we should be we any corporation really ). I will admit that this attempt is working in a sense that it is a lot less clear to a non-computer person as to:

- whether there are any damages - what the big deal is

In my mind, the entire thread identified a lot of those, but I think someone already said that it will likely be tested in court ( and I have zero idea, which way it will turn ).

For the record, I personally think Copilot is a cool tool ( frankly, it is not that different from automated stack exchange in terms of results ). If I worry about anything, it is that the overall standards will decline even further.