Regarding what Lynch may have thought about (generative) AI, we have to take into account that Lynch was already in a position where he could afford to fish for ideas and have them made into films; everyone around him suddenly having access to produce something similar to what he might have spent years on in, say, a day, he would very likely know that was going to put him out of business. I don't know him well enough to say whether that would be something he would welcome; the vast majority of people fear such situations.