The example is a real legal case afaik, or perhaps paraphrased from one (don’t think it was a monkey - an ape? An elephant?).
I’d guess the legal scenario for `rails generate` is that you have a license to the template code (by way of how the tool is licensed) and the template code was written by a human so licensable by them and then minimally modified by the tool.
I think you're thinking of this case [1], it was a monkey, it wasn't a painting but a selfie. A painting would have only made the no-copyright argument stronger.
[1] https://en.wikipedia.org/wiki/Monkey_selfie_copyright_disput...