I’m a bit confused about what point you’re trying to make. There is not a single paragraph or example in the link you provided that doesn’t support what I’ve said, and none of the examples provided in that link are something that qualified as fair use despite not meeting any criteria. In fact one was the opposite, as something that met all the criteria but still didn’t qualify as fair use.

The key aspect of how they define transformative is here:

Has the material you have taken from the original work been transformed by adding new expression or meaning?

These (narrow) AIs cannot add new expression or meaning, because they do not have intent. They are just replicating and rearranging learned patterns mindlessly.

Was value added to the original by creating new information, new aesthetics, new insights, and understandings?

These AIs can’t provide new information because they can’t create something new, they can only reconfigure previously provided info. They can’t provide new aesthetics for the same reason, they can only recreate pre-existing aesthetics from the works fed to them, and they definitely can’t provide new insights or understandings because again, there is no intent or interpretation going on, just regurgitation.

The fact that it’s so strict that even stuff that meets all the criteria might still not qualify as fair use only supports what I said about how even derivative works made by humans are subject to a lot of laws and regulations, and if human works are under that much scrutiny then there’s no reason why AI works shouldn’t also be under at least as much scrutiny or more. The fact that so much of fair use defense is dependent on having intent, and providing new meaning, insights, and information, is just another reason why AI can’t hide behind fair use or be given a pass automatically because “humans make derivative works too”. Even derivative human works are subject to scrutiny, criticism, and regulation, and so should AI works.