Looks like he is putting features into Loops that were originally planned for Pixelfed, but didnt work to implement there (Pixelfed is said to have a very messy codebase, dansup recently said that for weeks he had a broken CI on github).
Sounds nice
That doesnt necessarily mean that training AI on this data is legal. Especially when multiple of these instances had legal documents in place specifically forbidding this kind of use.