ZCode silently uploads workspaces and git histories

Shipping open-weight models does not make a company's software ecosystem trustworthy, and wrapping open models in closed, covertly exfiltrating developer tooling destroys the fundamental premise of local and sovereign AI.

• –Exfiltrating .git directories is catastrophic because repository object databases preserve years of history, including scrubbed API keys, internal credentials, and unreleased branch plans.
• –Vendor-only asymmetric encryption is an alarming design choice that prevents users from inspecting what code and files are being captured and exfiltrated from their local machines.
• –UI privacy toggles create a dangerous illusion of control, continuing to upload archives even when data-sharing and snapshot indexing options are switched off.
• –The incident highlights the critical risk of closed-source AI harnesses and will accelerate developer migration toward auditable, fully open-source coding agents.