I think any line is necessarily going to be arbitrary, a blanket ban on any ML model being used in production would be plainly impossible -- using Ozone's EQ assistant or having a Markov chain generate your chord progressions could also count towards "in substantial part", but are equally hard to object to.
But we also live with arbitrary lines elsewhere, as with spam filters? People generally don't want ads for free Viagra, and spam filters remain the default without making "no marketing emails" a hard rule.
The problem isn't that music Transformers can't be used artfully [1] but that they allow a kind of spam which distribution services aren't really equipped to handle. In 2009, nobody would have stopped you from producing albums en masse with the generative tech of the day, Microsoft's Songsmith [2], but you would have had a hard time selling them - but hands-off distribution services like DistroKid and improved models makes music spam much more viable now than it was previously.
[1] I personally find neural synthesis models like RAVE autoencoders nifty: https://youtu.be/HC0L5ZH21kw
[2] https://en.wikipedia.org/wiki/Microsoft_Research_Songsmith as ...demoed? in https://www.youtube.com/watch?v=mg0l7f25bhU