The root problem is that the model reproduces Indiana Jones instead of creating a new character. This contradicts the statement that the model "learns" and "creates" like a human artist and not merely copies; obviously a human artist would not plagiarize when asked to draw a character.

> the model reproduces Indiana Jones

the model isn't the one infringing. It's the end user inputting the prompt.

The model itself is not a derivative work, in the same way that an artist and photoshop aren't a derivative work when they reproduce indiana jones's likeness.

That does not seem obvious at all. Fan art and referencing is a thing, and there are plenty of examples of AI creating characters that do not exist anywhere in the training dataset.