Microsoft is restricting its employees from using Anthropic’s newly released Claude Fable 5 model inside GitHub Copilot, while internal legal and compliance teams continue reviewing Anthropic’s data retention terms. Multiple outlets report that Microsoft blocks employee access to Claude Fable 5 due to concerns about a 30-day data retention policy tied to the model, specifically regarding how prompts and outputs may be stored or retained. Microsoft has reportedly made Claude Fable 5 available to paid customers of GitHub Copilot and Foundry, even as the company continues its internal review for employee use. Other Claude models remain available to employees under Microsoft’s “Zero Data Retention” rules, according to the reporting. Anthropic has not provided a workaround that would align Claude Fable 5 with Microsoft’s internal retention requirements during the review period. The restriction is portrayed as temporary and driven by legal assessment of the updated terms rather than a technical limitation.