Basically the transformative abilities of LLMs can make copyright obsolete.
That is wishful thinking. Copyright was originally designed to protect human creativity, and a lot of the laws and precedence cases involve human effort specifically to distinguish between plagiats and original works.
As long as courts don’t start to rule otherwise, LLM generated code is not considered to be copyrightable itself, thus it can not be original work as defined under copyright laws. This in turn lowers the threashold for such code to be considered a derivative regardless of if there is a clear pathway from one to the other. All it takes is someone to claim that it is derivative, and the burden of proof that it isn’t largly falls onto the person accused. And if the code is functionally identical and with no significant human involvement, that is very hard to proove.
IANAL of course.