It's sort of like distributing a compendium of book reviews. Many of the reviews have quotes from the book. If there are thousands of reviews, you could potentially reconstruct the whole book, but that's not the point of the thing and so it makes sense for the infringing thing to be "using it to reconstruct the whole book" rather than "distributing the compendium".
And then Anthropic fended off the argument that their service was intended for doing the former because they were explicitly taking measures to prevent that.
Maybe this is a misrepresentation of the actual Anthropic case, I have no idea, but it’s the scenario I was addressing.
This is the thing you haven't established.
Any ordinary general purpose computer is a "machine" that can produce copyrighted text, if you tell it to. But isn't it pretty important whether you actually do that with it or not, since it's a general purpose tool that can also do a large variety of other things?