Model distillation can't be stealing at all if you rationally apply copyright law to it. Anthropic is not deprived of Fable so there is no theft. At best it would be infringement, but even that might not hold up in the courts given the current position that model outputs can't be subject to copyright.

> harvesting my Claude chats from my `.claude` directory

Just reminded me to set a backup on that directory. Just in case someone sees it fit to override my setting to preserve my chats for 10k years.