No, how would they get caught? Even if their LLM outputs verbatim copies of the code, they can simply claim some victim company's employees bypassed the victim

No, how would they get caught? Even if their LLM outputs verbatim copies of the code, they can simply claim some victim company's employees bypassed the victim company's restrictions and must have used the code as input with an LLM. Joke is on you for doing business with them. And when there is some little known secret fact in the output, they claim it's been hallucinating... magical black box thinking makes it safe. It's a laundry for any input. A bit like a tor network routing for big tech deniability. Things go in, and things come out, but you can't prove the relationship between input and output as a third party, who isn't running the LLM.