The AI doesn't address AT ALL what he said.

and neither have you.

Bitcoin incentivizes free-riders (hodlers) that control UTXOs but do NOT contribute to the security budget through paying transaction fees.

The security budget is only payed by people actually making transactions on the network. Although hodlers also benefit from it. As MM points out, the security of the network is one of Bitcoins primary features.

So a subset of people pay for that network security and a subset are free-riders.

The definition of the free-rider problem.