I don’t think Google is reading all of your email in this way, or your phone text messages being read in this way, or say iCloud or OneDrive files being monitored in this way.

Certainly it shows that agents like Muse are a complete nonstarter for anyone doing anything that needs to be private. Even if you never talk about it with the bot, merely having sensitive information on your hard drive means it can be sent to outside servers where, if it hits some safety filter, some probably low paid employee is going to read it. Say you’re working for a public company and have files on your computer that could be material nonpublic information, now potentially some content monitor is going to be seeing that and trading based on it. It’s completely untenable to have everything you put on your computer be subject to human review at some tech company.