We can break this into (1) and (2):
(1)
The model is a copyright violation as it contains untransformed copyrighted material. You can show this by simply asking for a picture of Mickey Mouse.
To preempt a few (obvious) arguments about what it means to be "transformed", keep in mind an encrypted zip file containing images of Mickey Mouse would not be considered transformative, even if it happens to contain images that aren't copyrighted.
(2)
> then it does so to exactly the same degree as it would if it wasn't AI generated.
This is the conclusion of an argument, but I'd need to see how you show that "it does so to exactly the same degree". Right now, it looks like you're taking that as a base assumption.