To be specific, the jump you are making is likening LLM output to non-free code, while on the surface level it makes sense, it's much closer to making stuff based on copied code. In the US at least, there's clear legal precedent that LLM fabrications are not copyrightable.

Blanket AI bans are enforceable, I'm not arguing against that, it's just that I don't think it's worth instituting, that it's not a good fit for this project. My argument is that a Lemmy development policy of "please mark which parts of your code are AI-generated and how you used LLMs, and we will evaluate accordingly" is better than "if you indicate anywhere that your code is AI/LLM-generated, we will automatically reject it".