Which I think was fairly predictable.
What wasn't predictable was that someone would ship this Copilot anyway, consequently exposing their company and their users' companies to liability.
Imagine if you hired an intern who was copy&pasting bits of GPL'd code throughout your system. This would not be a good job, it would be something that needed immediate attention from legal counsel and others, and mean reverting every commit the intern from heck made if you couldn't prove convincingly it wasn't tainted. Especially if you're a startup, who needs to assure investor due diligence in good faith that you actually own the IP.