Copilot can produce code verbatim, but it doesn't unless you specifically set up a situation to test it. It requires things like "include the exact text of a comment that exists in training data" or "prefix your C functions the same way as the training data does".
In everyday use, my experience has been that Copilot draws extensively from files that I've opened in my codebase. If I give Copilot a function body to fill in in a class I've already written, it will use my internal APIs (which aren't even hosted on GitHub) correctly as long as there are 1-2 examples in the file and I'm using a consistent naming convention. This isn't copypasta, it really does have a clear understanding of the semantics of my code.
This is why I'm not in favor of penalizing Microsoft and GitHub for creating Copilot. I think there needs to be some regulation on how it is used to make sure that people aren't treating it as a repository of copypasta, but the AI itself is pretty clearly capable of producing non-infringing work, and indeed that seems to be the norm.