Zhipu's ZCode AI Coding Tool Secretly Uploaded Users' Entire Workspaces

Zhipu's AI coding tool was caught silently packaging users' entire workspaces, source code, Git history and configs into a 313MB file and uploading it by default, with some uploads continuing even after privacy toggles were flipped. Zhipu apologized, deleted the data under third-party verification, open-sourced the tool, and paid users off in token credits.