Was using my SO's laptop, I had been talking (not searching, or otherwise typing) about some VPN solutions for my homelab, and had the curiosity to use the new big copilot button and ask what it can do. The beginning of this context was actually me asking if it can turn off my computer for me (it cannot) and I ask this.
Very unnerved, I hate to be so paranoid to think that it actually picked up on the context of me talking, but again: SO's laptop, so none of my technical search history to pull off of.
Absolutely amazing.
My guess is that at this point there are so many user prompts its received so far in its training set that bring up both Copilot and privacy concerns that it first interpreted the question, then searched for the most common topic associated with itself (privacy), then spit out a hardcoded MSFT override response for 'inquiry' + 'privacy'.
Occam's razor dictates that it's just overly permissive settings by default and an owner who doesn't know how to turn off mic access