This is literally the "you wouldn't steal a car" meme.
To spell it out: No, this analogy does not hold. "Stealing" data does not deprive the owner of anything, so it should not be treated remotely the same as physical stealing (usually not even of potential revenue, as piracy studies show).
While there might not be damages in the literal sense to the owners of the scraped repos, MS is making money from Copilot subscriptions, so what they're doing is closer to selling bootleg copies of a film than giving away pirated copies.
I partially have to concede on that point. The anology could have been better, and I should have put greater emphasis on the massive scale and the lack of recourse for those affected.
Nevertheless, stealing remains illegal so at the very least they have deprived the source code owners of their rights.
To spell it out: No, this analogy does not hold. "Stealing" data does not deprive the owner of anything, so it should not be treated remotely the same as physical stealing (usually not even of potential revenue, as piracy studies show).