"Insider Knowledge" is not relevant for copyright law. That is more in the space of patent law then copyright law.
Or else a artist having seen a picture of a sunset over an empty ocean wouldn't be allowed to pain another sunset over an empty ocean as people could claim copyright violation.
Through what is a violation is, if you place the code side by side and try to circumvent copyright law by just rephrasing the exact same code.
This also means that if you give an AI access to a code base and tell it to produce a new code base doing the same (or similar) it will most likely be ruled as copyright violation as it's pretty much a side by side rewriting.
But you very much can rewrite a project under new license even if you have in depth knowledge. IFF you don't have the old project open/look at it while doing so. Rewrite it from scratch. And don't just rewrite the same code from memory, but instead write fully new code producing the same/similar outputs.
Through while doing so is not per-se illegal, it is legally very attackable. As you will have a hard time defending such a rewrite from copyright claims (except if it's internally so completely different that it stops any claims of "being a copy", e.g. you use complete different algorithms, architecture, etc. to produce the same results in a different way).
In the end while technically "legally hard to defend" != "illegal", for companies it's most times best to treat it the same.