The future: SWEs will no longer write code by hand. The era of hand coding is over. We only saw that for sure in the last 6 - 9 months. But it's over.
Many coders have not yet made this transition, true, but it's happening regardless. You may not like it, but as a coder, you will not be hired if you refuse these tools. You will look as ridiculous as an accountant that refuses to use spreadsheets.
For now, we're not there yet.
As a profession, we are learning how to deal with the massive influx of review work that occurs because of LLMs. The bottleneck has moved. And as of now, there aren't good answers. But there will be. We will figure it out, like we figured out CI/CD and agile.
So personally, I'd focus my policies much more on dealing with the issues that this new era presents, and how to make LLM contributions work, and I'd avoid banning LLMs.