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How long is a book? How much text can I copyright for $45 and then go after people over "excerpts"?

I'm not sure but I can see how such a system can be gamed

Copyright exists upon creation, registration is required to sue. They don't need to register them all.

Registration is not required to sue, but definitely makes it easier.

You can file multiple works as one collective work - https://www.copyright.gov/circs/circ34.pdf

So the AI has some side jobs on Fiverr

Is this how the paperclip maximizer scenario gets started? The AI decides to take over the government in order to reduce filing fees.

"You optimized for WHAT?"