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Until they lobby to get laws changed, many companies have legal requirements regarding PII that mean serious fines if CoPilot or Recall ever turn on in their environment (and if they’re caught of course).
Windows is not going to fuck this up and force this on, handing easy legal wins against them to the world. They will have the normal configuration options available that they always do for features with potential legal liability attached.
Did you miss the recent security blunder with Government security and Microsoft? They didn’t want to tell governments of a secuirty hole in case it meant lowers sales.