Legal departments are employed to tell you about legal risks, not to predict the future. Your corporate lawyer isn’t going to go “yeah that’s illegal but it’s totally awesome bro”. The execs might but not the lawyer.
In this case, the riskiest issue isn’t copyright, it’s that it can generate NSFW/CSAM, which governments and payment processors both get really upset about.
It’s not about predicting the future. The point of communicating legal risks is to make assessments about which risks might be worth taking because complying with every single law is impractical.
It’s part of the basic structures where the legal team has an advisory role.
In this case, the riskiest issue isn’t copyright, it’s that it can generate NSFW/CSAM, which governments and payment processors both get really upset about.