> is LLM generated code a derivative work of the prompts?

Very good question I would think it is. You are just using a mechanical system to transform your prompt to something else, Right?

But, a distiguishing factor may be that:

1. Output of the LLM for the same prompt can vary

2. So you don't really have "control" over what the AI produces

3. Therefore you should not get a copyright to the output of the LLM because you had very little to say about how that transformation (from prompt to code) was made.