IANAL, but as long as they block copilot producing verbatim code (which I believe they do now, after some blowback), I can't reason my way past "so you're not okay with a computer learning from you, but you are okay with people learning from you?". Because I am. One of the reasons I open source stuff is because I've learned so much from OTHER open source projects, and want to pay it forward. Limiting my "pay it forward" attitude to humans feels hard to enforce.

Also, nothing prevents Microsoft from completely ignoring licenses and terms of use elsewhere. This product isn't open source: they can keep the list of projects they crawl to themselves, and I don't see any way to stop it.