Allow Copilot to Upload Local Files to Microsoft 365

This policy setting controls whether Copilot can send a local file from the device to the Microsoft 365 service so it can understand the file's contents. The file stays within the Microsoft 365 service boundary. It is off by default because the file leaves the device.
If you enable this policy setting, Copilot can send local files to Microsoft 365 for processing, subject to the cloud isCopilotFileUploadEnabled policy.
If you disable or do not configure this policy setting, local files are not sent off the device from the Code Tab / device tools.
For more information, see https://aka.ms/copilot-device-tools
Note: This policy setting only applies to subscription versions of Microsoft 365 Copilot on Windows and macOS desktop apps.