This is what I disagree with. Say I rent a movie on Prime and my connection to Prime goes down before I can watch it, but I do have access to a torrent. I paid for it, so I leech and watch it during the rental period from a different source and then delete it; who have I wronged? What damage have I done? None. Yet, under the same law this is deemed illegal.

Anthropic clearly tried to fix their "mistake". The only argument I can find is that they didn't buy it upfront - probably they didn't have the funds for that - but then made the money off the pirated stuff to make it right after. So they leveraged piracy. But that is a smaller scope than "every time is a separate violation period".