I've been running Claude Code in a VM, where I clone the GitHub repos I want it to work on (they're open source so no login info needed) but have no other credentials. I used to reset the VM every day, but that was getting to be a bit of a hassle so I switched to a monthly reset. But even so, it would be hard for Claude to exfil anything more than what open-source projects I've been working on in the past month (at worst). Which still could tell someone quite a lot about me, but most of that info is already out there available with a Google search — after all, when you contribute to open source projects, your name and email address get stored in immutable Git history.
But after seeing this, I think I might switch to a weekly VM reset rather than monthly.
BTW, if anyone is interested in a decent setup for an AI agent jail, the scripts at https://jai.scs.stanford.edu/arch-vm.html are what I used, plus adding a few more packages to the pacstrap command such as dotnet-sdk. I then made the guest root directory a BTRFS subvolume, so that I can snapshot it. Then spinning up a new VM is a `sudo btrfs subvol snap template-root newvm` command (basically instant) followed by running the `qemu-system-x86_64` command (takes a couple of seconds). It's easy, but I retain complete control over the contents of the VM. It's been great so far.