I haven't heard this phrase (rather, I've heard "code is law" in reference to a subset of smart contract exploits that could also be considered "creative arbitr

I haven't heard this phrase (rather, I've heard "code is law" in reference to a subset of smart contract exploits that could also be considered "creative arbitrage opportunities" if you squint enough) But in this case, the person you're responding to is pointing out that law has the ability to be interpreted and even "created" ad-hoc through that interpretation, unlike code which needs to be updated to be changed.