They acknowledge the issue is before courts:
> These issues are the subject of intense debate. Dozens of lawsuits are pending in the United States, focusing on the application of copyright’s fair use doctrine. Legislators around the world have proposed or enacted laws regarding the use of copyrighted works in AI training, whether to remove barriers or impose restrictions
Why did they write the finding: I assume it's because it's their responsibility:
> Pursuant to the Register of Copyrights’ statutory responsibility to “[c]onduct studies” and “[a]dvise Congress on national and international issues relating to copyright,”...
All excerpts are from https://www.copyright.gov/ai/Copyright-and-Artificial-Intell...