it's about copyrighted content

so yes it applies to fully AI-generated code as much as to "AI art".

like with AI assisted art it doesn't apply to AI assisted coding

and yes if everything is fully AI generate there is no copyright anymore, that is by design!

Copyright is there to protect human creativity/time investment. If there is no creativity/time investment, then there is no reason for copyright to exist either. Having still copyright there would mean moving it from a law to protect creative work to a law to protect the privileged few which can afford to just mass generate "everything" with AI. That isn't just very undesirable, it's kinda plain evil, as it would mean screwing over the majority of humanity.

Naturally as mentioned that only applies to full AI products, not to AI assisted products in which case the "human contribution" and thinks resulting from it still have copyright.