Microsoft reportedly restricts Claude usage during unsurprising events Fairy tale 5 Due to Anthropic’s new data retention requirements. It is part of Anthropic’s Mythos class of models and ships, with strong capabilities in software engineering and analytics.
Following new data retention requirements, Anthropic can now Save generated commands and outputs for up to 30 days. It should also be noted that content flagged by its security systems may be retained for up to 2 years to allow sufficient time for investigation or enforcement.
Microsoft has temporarily banned employees from using Claude Fable 5. customer data and corporate details may be inadvertently shared. If recorded by Anthropic’s security systems, this information may be accessible during investigations and potentially exposed to a competing company (via The Verge).
In the interim, The Verge reported that Microsoft’s legal and compliance teams were investigating changes to Anthropic’s data retention requirements. Although not directly related, in December 2025 after giving employees access to Claude Code and enabling workflow integration, Microsoft has announced that all licenses will be canceled as of June 30.
Reports suggest that the move was deliberate encourage staff to switch to the GitHub Copilot CLI. It also turned out that the Claude Code was very popular with most Microsoft employees, which apparently prompted the company to shift gears and, in turn, move forward. GitHub Copilot CLI.
This decision also seems to be a financial game. with Microsoft’s fiscal year ends on June 30the timing suggests the company is aiming to cut operating costs as part of its year-end strategy.
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