I haven't followed the details of this case, but as a general notion, that sounds kinda reasonable to me?
Copyright law and enforcement is terribly broken in the USA, with a handful of giant publishers wielding massive, abusive power and the average American being harmed by losing their fair use rights and independent creators being bullied and abused by the giants behind the copyright cartel.
2020 upended society in many ways and created opportunities to fix various dysfunctional parts of society. It changed things as diverse as work-from-home norms to laws around takeaway alcohol from restaurants. The possibility to also improve copyright restrictions seems reasonable.