I've been finding co-pilot really useful but I'll be pausing it for now, and I'm glad I have only been using it on personal projects and not anything for work. This crosses the line in my head from legal ambiguity to legal "yeah that's gonna have to stop".
do you have the "don't reproduce code verbatim" preference set?
Not to mention this code wasn't public so it's kind of moot, having someone's private code be generated into my project is very bad.
As to the option, I do not, I wasn't even aware of the option, but it's pretty silly to me that's not on by default, or even really an option. That should probably be enabled with no way to toggle it without editing the extension.