Sure, and I agree that this can be an honest mistake. But distributing the code through copilot might still be copyright infringement. If copilot indeed infringes on copyright on some cases, then there must be a way to make copilot complying and stop distributing the copyrighted code in question.
Normally, if person 2 steals your code and hosts it on Github while infringing the original license, person 1 can send a DMCA notice to Github to take the code down. A similar process could be involved for copilot too.
If copilot would be a DMCA safe harbor, then they would need to comply would DMCA notices and stop distributing the offending code in a timely manner. It might be implemented by elaborate filters (which are probably not a 100% accurate), or batching up DMCA notices, and retraining their model regularly with offending repos/code excluded.
Of course, Microsoft drag their feet and say that copilot never infringes on copyright. They don't want to do any of this.