Microsoft restricts its employees from using Anthropic’s newly released Claude Fable 5 inside GitHub Copilot, according to multiple reports citing concerns about the model’s data retention terms. Sources say Microsoft blocks or limits internal use while its legal team continues reviewing Anthropic’s changes, particularly a requirement that prompts and outputs are retained for 30 days, with longer retention for content flagged for review. The restriction applies to staff use of Claude Fable 5, while Microsoft reportedly makes the model available to paying GitHub Copilot and Foundry customers. Other Claude models remain usable internally under “Zero Data Retention” rules, and Anthropic has not provided a workaround for the Fable 5 retention policy, the reports add. At least one outlet also notes that beyond Microsoft, some legal and enterprise users are assessing potential risks tied to data handling requirements, including possible implications for sensitive workflows. The overall picture across sources is that access for Microsoft employees is paused pending legal review, even as customer rollouts proceed.