The basic high frequency (20kHz - ish) induction hob is designed to work with magnetic metals like cast iron and some steels. The principle of induction heating is create eddy currents in the surface boundary layer of the bottom of the pan/pot. These eddy currents, are the free electrons of a metal flowing through the surface resistance (ie the resistance of the boundary layer not the bulk of the base of the metal bottom) create Ohmic heating according to Isquared R. The problem in using copper or aluminium is that they are better conductors than iron or steel which means that their surface resistance is lower - thus the Ohmic heating is less from Isquared R. Also, cast iron and some steels, being paramagnetic - which means they do not readily maintain their magentic polarisation but the bound (as opposed to free) electrons do tend to align their spin axes with the applied HF magnetic field. As the applied HF magnetic field is alternating they suffer hysteresis - which creates heat too. To be able to use copper or aluminium one has to use higher frequencies which will produce thinner boundary layers and this effectively a higher skin/surface resistance.
So, what I think has happened is the HF oscillator has been mismatched to its load - it expects to drive a higher impedance load than the pot/pan in question provides - and thus as you say more of the power generated by the oscillator is dissipated in the hob coil and power electronics because the HF current on the primary side of this transformer system is higher than it is designed for. Effectively - think Thevenin equivalent circuit of the primary side of the induction transformer - the lower Zload causes a high current I through the source impedance Zsourse - which does not do it (the HF source ) any good - the Ohmic heating of the resistive part of Zsource is higher. My great surprise in all this is that this problem is highly likely so I would expect some clever electronics to detect it and shut down the HF before irreparable damage occurs - hence the question about fault codes.