The human behind the AI did insist that they had absolutely no part in creating the image, and the decision is taking that at face value. No human creator - no copyright. Since it's purely based on their input, it also doesn't look at questions like "was the AI created using input material that's copyrighted and might that have relevance"
It has zero applicability on "AI art"/code/text/... created by a human using an "AI" as a tool to do so.
But somehow this gets paraded around every few months as being some important decision...