The argument may make sense if they limited themselves to public-domain (CC0) works, but that is not what happened here. If CoPilot attributed something to an AGPL project, does it mean the "virality" applies to all projects that use code from CoPilot?
If that works, then I can't wait for that to be a boon for Wine and ReactOS: "Microsoft itself provided this code and allowed us to use it, so therefore it's totally legal. Neener neener."
A repo setting that instructs Github not to use your code for Copilot, it could be a similar option as turning Discussions on / off.
If they really want to win developers over they would even have Copilot scanning disabled by default but that'll never happen.
"Now in Preview – Amazon CodeWhisperer"
https://aws.amazon.com/blogs/aws/now-in-preview-amazon-codew...
They may be morally in the wrong, but I'm unsure they are legally in the wrong here. To boot, denying them the right to create this tool in your license is technically a violation of OSS principles and problematic
[1]: https://docs.github.com/en/site-policy/github-terms/github-t...
Wouldn't this be a violation?