I hate that this may be true, but I also don't think the law will fix this for us.
I think this is down the community and the culture to draw our red lines on and enforce them. If we value open source, we will find a way to prevent its complete collapse through model-assisted copyright laundering. If not, OSS will be slowly enshittified as control of projects slowly flows to the most profit-motivated entities.
But what tools do we have to stop this happening? I agree, we can (and should) all refuse to participate in licence laundering, but there will always be folks less principled.
I don’t know what happens next, honestly.