I think ‘generates’ means produces this output in this context. It’s the correct term for the technology being talked about. Nobody is confused that it’s producing new cryptographic tokens.
But it's not generating the secrets, it's generating code that contain those secrets.
They are being generated. It's a Generative Pre-trained Transformer. It's generative. It generates things. That's what this technical term means. It's correct.
The generated output has building blocks (characters, words) which themselves are not "generated" in the sense that they are novel.
A random number generator generates numbers. It doesn't generate the digits used to represent the random numbers. Those are taken from a set (such as 0..9) and just "used".