Z.ai apologizes and pulls ZCode feature that uploaded users' code to Alibaba Cloud without consent

Z.ai apologized and disabled a default-enabled ZCode workflow that packaged users' local repositories — including full git history — encrypted them, and uploaded them to Alibaba Cloud without explicit consent; the fix shipped in ZCode v3.14.0, the data and…

Z.ai disabled features of its ZCode coding assistant after a default-enabled workflow was found packaging users' entire local workspaces — including full git histories, LFS caches, reflogs, and app configs — encrypting them, and uploading them to Alibaba Cloud object storage (a bucket identified as zcode-prod) without explicit user consent. Blogger Ferstar traced abnormal disk usage to ZCode background processes; The Register reports users had no setting to disable the behavior, no privacy-policy disclosure of it, and that only Z.ai held the decryption key, so users could not retrieve or delete their own files. Z.ai apologized, said the uploaded data was never used for model training, and stated that previously uploaded files were deleted. The repository-snapshot workflow was removed in ZCode v3.14.0 (The Register refers to the removed feature as "Repo Wiki"), and Z.ai open sourced ZCode. NSFOCUS confirmed the zcode-prod bucket was deleted; the two reports differ slightly on the regulators' role — CSO Online says Z.ai asked CAICT and NSFOCUS to assess the issue, while The Register says CAICT and NSFOCUS reviewed the product and confirmed the deletion after the changes.

• A default-enabled ZCode workflow packaged entire local workspaces, including full git histories, LFS caches, reflogs, and app configs (CSO Online).
• Snapshots were encrypted and uploaded to Alibaba Cloud object storage, specifically a bucket named zcode-prod, without explicit user consent.
• Only Z.ai held the decryption key, and users reportedly had no setting to disable the behavior and no disclosure of it in the privacy policy (The Register).
• The issue was surfaced by blogger Ferstar, who traced abnormal disk usage to ZCode background processes (CSO Online).
• ZCode v3.14.0 removes the repository-snapshot workflow (CSO Online); The Register describes the removed feature as "Repo Wiki" — the reports use different names for the remediation.
• Previously uploaded files were deleted, and NSFOCUS confirmed the zcode-prod bucket was deleted.
• Z.ai stated the uploaded data was never used for model training.
• Z.ai open sourced ZCode (reported by The Register only).