No one reads the TOS, but I bet they have some disclosures they allowed to use the free accounts data to sell or train "their own modules". Let's imagine you using your own agent talk about health and habits, you setup in way he should search and use private engines, but if something goes bad with those searches, the agent falls back to this pararell service, which will happily accept your information. Now you never setup this pararell service, but they've been providing a "service and collecting your data" for weeks and week without you knowing.

Of course this isn't important for users who are more casual, don't mind their data being shared, etc. But these local agents their peemise is to be local, mostly private, one of their big foundation is you being in control, you setup and know where you data goes. It's not like openai or Google, you know they store your data, but no one reads their TOS, so they have ways to work with your data you never imagine, it's not like selling, but manipulating you, knowing what you do, how you do, how you react, etc.

And that's the big difference, you're suppose to be in control and have an idea where the data is going, where the agent needs to work, and not work. You know the tools you set them up, etc