I mean, this is a pretty normal distinction afaik (human vs non-human creations; afaik non-human creations almost always have any human copyright claims voided when challenged).
Imo what makes this special is how precise he's being. If I understand correctly, he's basically saying that the code for the health bar is a human creation and protected by copyright, but while the code to change the health value might be human-made, the actual values are machine-made and not under copyright (there's probably a lot of nuance I'm skipping over, but my understanding is that's the gist of it).
Yeah, yanno I think that's a fair interpretation. I don't fully agree with it, but I can see your logic. I will say that, now that you mention the orc thing, I think I seeing something like that once and I think I remember the OP getting a warning for it being too real (I have a vague memory of seeing something like that and thinking, "okay, that's too far, that's not funny anymore" and then seeing a mod warning in the comments). It seemed like most of the users knew where the line was and tried to avoid stepping over it, but again, it's been a while since I last bothered to look at Reddit (at least a year I think, maybe two), so I could be misremembering or things could have changed, etc.