Microsoft could have used any dataset for their blog, they could have even chosen to use actual public domain novels. Instead, they opted to use copywritten works that JK hasn't released into the public domain (unless user "Shubham Maindola" is JK's alter ego).

The licence?

If it comes from a site claiming it was under a licence when it was not, the misdeed is done by the person who provided the version carrying the licence.

The licensing: If I steal something and tell you its free and yours for the taking, that feels different than a Fence (knowingly) buying stolen goods. It's obviously semantics and there should have been some better judgemend from MS, but downloading a dataset (stated as public domain) from kaggle feels spiritually different from piracy (e.g.: if someone uploads a less known, copyrighted data set to kaggle/huggingface under an incorrect license, are tutorials that use this data set a 'guide to pirating' this data set? To me, that feels like a wrong use of the term)

The 'artwork' they generated and the text on the blog post?