I've yet to see that come up as an issue within this niche - it's mostly code based work, so a certain tolerance for forking/remixing is baked in. Unsurprisingly, highly derivative work doesn't raise much interest.
I'm deep in the generative art NFT thing too, and I've seen it come up a couple of times.
In a couple of cases algorithms have been outright copied and used for new projects. Personally I believe that's wrong and people shouldn't do it. Definitely would not buy any such work.
There's also been a few cases where some code is clearly based on other code, and some artists get mad about that. For myself, this feels a lot less clear cut, and I might consider some such art if I felt it was novel enough.