It's not specific to copyright, Adobe Firefly has trouble producing something as straightforward as a cat. This puts it on par with earlier renditions of competitor AI image generators, and just like those, I'm sure Adobe will work it out.
Firefly is absolutely underwhelming. Its been 10 months since Dalle 2, and it is just a slightly improved version of Dalle2 (With just as bad censorship filters). Adobe clearly only started their generative AI project only after Dalle 2 was released. Otherwise you would expect their internal team to have far more polished results.
Like, who exactly is a user of firefly at this point? You'd work far faster just copy pasting images from Midjourney into photoshop, than trying to wrangle firefly to produce good results. If you want strong control, SD is the answer. If you hate AI, you won't use it at all. Adobe will barely get feedback data.
However, I believe it is unfair to hold it to such high standards or compare it to Midjourney. It is new beta software and other AI image generating products have had this same problem and managed to resolve it in less than a year. I'm certain Adobe will keep working on the Firefly image pipeline until it produces decent results.
This is not guaranteed, since Adobe has a much smaller library to call on for training data than the rest of the market. This can't really change unless they follow their competitors and ignore licences etc.