When you use AI features, the IDE needs to send your requests and code to the LLM provider. In addition to the prompts you type, the IDE may send additional details, such as pieces of your code, file types, frameworks used, and any other information that may be necessary for providing context to the LLM.
Doesn’t sound like it gives you much transparency or control over the data it sends no matter which feature you use. Sadly not usable at my job then.
A win in my book!