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The IP law is purely a function of economic power, so we know how that will go. To the maximum benefit of the plutocrats that rule our global civilization.
But the more interesting part is the philosophical discovery: If a piece of code can be generated from scratch by a machine that is not creative, then any comparable piece of code is also not creative. In other words, only the very first time a new type of code or algorithm is written can there be creativity - if one follows your argument that LLM machines cannot be creative. This essentially raises the bar for copyright, and makes an objective test of what is copyrightable or not possible. If you can describe something in a prompt, and get a result of comparable function and quality to a human written version, that code is not creative either, therefor not copyrightable.
Obviously we're not quite there yet, but the more LLMs improve, the less code becomes copyrightable.
Coding becomes pure craftsmanship, like cutting and sanding some lumber and nailing it together to build a shed.
So if we were a rational and logical species, the overwhelming amount of copyright would be deleted and become public domain. Because it is now worth only the cheap solar power needed to generate it.
It is not my argument, but the official stance of the US copyright office and some other similar bodies around the world.
But yes, it poses some interesting philosophical questions, but those are not of very high relevance to copyright law.