I think that the reasoning is: they trust the git company (whatever it is) not to sell their code. They are worried that their code goes into a model and somebody else could ask the model "write a service like XYZ" and it will regurgitate their code.
GitLab even has a free self-hosted version, and it has a number of advantages (like being able to actually have a structure with inherited secrets and accesses, and no, GitHub Organisations do not count and suck). And for years thanks to GitLab-CI it was clearly ahead.