AIUI/IIUC/IANAL, Generative AI systems stack up tuned butterfly effects to create meaningful outputs. Which means, data is not merely stored inside a butterfly but spread across the system, and potentially every output from the butterfly cage is infringing everything, just almost negligibly. But no one can prove that or otherwise to be the case with current technology.

I think it's just unfixable as far as fixing goes. The "best" way is to nuke all GPTs and DALL-Es and bury the technology, and the next best is to mark them all un-copyrightable and un-publishable as a compromise. This second option should be an all-around win that also encourages edge and on-prem deployments, IMO.