They took a base model, trained on but not reproducing work, so entirely fair with no theft, and then tried to tweak it so it could make money for an artist.
Except that as soon as it is used to create work, it’s reproducing work that is derived from what it was trained on. Not just the stuff it was TUNED on or asked to derive style from.
As somebody who occasionally votes for laws I’ll make whatever assertions I want with whatever confidence I want. Lawyers are for legal advice, which isn’t what’s being discussed AFAICT.