Stable Diffusion is not made to decompress the original and actually has no direct mechanism for decompressing any originals. The originals are not present. The only thing present is an embedding of key components of the original in a multi-dimensional latent space that also includes text.
This doesn't mean that the outputs of Stable Diffusion cannot be in violation of a copyright, it just means that the operator is going to have to direct the model towards a part of that text/image latent space that violates copyright in some manner... and that the operator of the model, when given an output that is in violation of copyright, is liable for publishing the image. Remember, it is not a violation of copyright to photocopy an image in your house... it's a violation when you publish that image!
All of my other points remain unchanged by this pedantry.
While I doubt that specific case has been tested in court, arguably you could. If you created glitch art (https://en.wikipedia.org/wiki/Glitch_art) via compression artifacts, and your work was sufficiently distinct from the original work, I think you would have a reasonable case for transformative use (https://en.wikipedia.org/wiki/Transformative_use).