I think the sane take here is that if you let loose a coding agent in a project, you should assume it can read everything, because at any point it can issue a read tool command to read arbitrary file. If you want to be selective in what you share, a coding harness is probably a bad tool for the job. That said, AI companies still shouldn't be intentionally building features that upload code wholesale because it betrays the users trust. It's like if you hired a cleaner and the first thing it did was go to every room and opened every closet/cabinet. If you let a cleaner in your house, you're basically giving them full access, and if you're not comfortable with that, maybe you shouldn't be hiring a cleaner, but that doesn't excuse the cleaner rummaging through your stuff without a good reason.

Same principle applies to the grok build fiasco a few weeks ago.