That's also my read of the flag. But if they can train co pilot on input, I don't see what prevents them from training copilot on the code itself. In a court case they would simply say the opt in meant we can train from input. That's all we did.
To be fair, they display it reasonable prominently in GitHub when you are logged in. Given that, I feel the post title fall under the click bait category. I was fully aware of the Co-pilot opt-out change, but still clicked due the phrasing of the title.