commenter justifying why the EU is attempting to loosen their privacy laws.

They’re not?

They’re listing 2 possibilities:

Status quo: the whole AI (and tech in general) remains foreign controlled.

EU makes a change in GDPR Law

Maybe you can add a third option, like: “Perhaps GDPR law isn’t the reason why the tech sector in EU is so non-existant”, and a constructive conversation could’ve been had.

Has anything I’ve written even read like I’m forming a group of like minded people, virtue signaling, and running the other person out of town?

Yes.

when I’m clearly responding to what the person wrote and only what the person wrote

That’s sadly incorrect. You responded to an incorrect assumption made about the original comment.