An LLM can essentially reproduce a work, and the whole point is to generate derivative works. So by its very nature, it runs into copyright issues.
Derivative works are not copyright infringement. If LLMs are spitting out exact copies, or near-enough-to-exact copies, that’s one thing. But as you said, the whole point is to generate derivative works.
Leftists - making progress the enemy of perfection and fucking themselves over since always.