The point is I don’t think LLMs normally use copyrighted code in a way that would hurt open source projects.

I don't know. I'm not a lawyer, and copyright for code was a hot mess even before LLMs got involved. With how many opportunistic copyright/patent trolls there are and how easily convinced judges have been in the past, it could go either way.

Lol, so how do humans code in comparison?

The good programmers normally code by breaking down the problem into constituent parts and logically working through the problem, step by step. What differentiates this from tokenization is that instead of just looking for code that is similar for a similar problem, programmers can usually understand the effects of each line of code, visualize what the state of each variable will be in that step (or dump out the variables to look directly if unsure), and then move on to the next step. This logical problem-solving approach is fundamentally different from a tokenization+noise looking for a similar-looking problem approach. For one thing, you can solve problems that haven't been solved before.