To my eyes the issue the guy has issues with the site that hotlinked his image without permission. Google just indexed that site and picked up the image from there for its search results. Perhaps because that site was ranked higher than the site where he hosted the image. Google does not know the legal status of the content it indexes, unless it is coming from a site where all the content is copyright free such as Wikipedia.
The story doesn’t say whether he had informed Google that the image was infringing through a DCMA take down notice. If he hadn't done that or taken technical steps to stop the site that was hotlinking from being able to carry on hotlinking (something that should have been trivial for an Azure consultant). Then Google can hardly be to blame.