I was trying to explain so that you might understand, that there is a continuum between copying (the identity function) to more complex combinations of other transformations via your memory/ intuition.

I am definitely not trying to conclude that copyright or licensing is bad.

I have read the scheduler implementations in a number of different operating systems. If I were to implement a scheduler in a operating system, would you say that there is a probability that my scheduler will be a derivative to some extent of those that I have read? How is this materially different from training a GPT on those same pieces of code, and then asking it to construct a scheduler?

I would argue that while there are differences, there are also similarities. That means that the dichotomy is not true.