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Training Generative AI Models on Copyrighted Works Is Fair Use - Change My Mind
(mastodon.lawprofs.org)
This is a most excellent place for technology news and articles.
Seems quite obvious that the text you quoted refers exclusively to plagiarism. This does not include things like being inspired by it, referencing it, parodying it and of course not training AI either, because what matters is whether the result is protected content.
You can argue that memorizing and sharing training data is a copyright violation, and that's a fair point, but it's also worth noting that this is very much a minority, accidental and is being addressed.