

That seems to be the terms for the personal edition of Microsoft 365 though? I’m pretty sure the enterprise edition that has the features like DLP and tagging content as confidential would have a separate agreement where they are not passing on the data.
That is like the main selling point of paying extra for enterprise AI services over the free publicly available ones.
Unless this boundary has actually been crossed in which case, yes. It’s very serious.

The free version is mainly just a number of user and device limit. Although the relaying service might be limited as well, but that should only matter if both of your clients have strict NAT, otherwise the Wireguard tunnels gets directly connected and no traffic goes through Netbirds managed servers.
You can also self-host the control plane with pretty much no limitations, and I believe you no longer need SSO (which increased the complexity a lot for homelab setups).