The issue is in how it creates the output. Both Dalle and Copilot can work only by taking work of people in past, sucking up their earned know how and creations and remixing it. All that while not crediting (or paying) anyone. The software itself might be great but it only works because it was fed with loads of quality material.
It's smart copy&paste with obfuscation. If thats ok legally. You can imagine soon it could be used to rewrite whole codebases while avoiding any copyright. All the code will technically be different, but also the same.