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Encryption is irrelevant here. Even if it was kept fully server side, the actual issue is that they allow starting a conversation in a strong model and continuing it in a weaker one. Disallowing that entirely would be a huge hit to user experience.
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That's not a trivial thing to do for them because they offer zero data retention environments to enterprise clients.
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They can always keep the encrypted blobs server side and send the key to the user. But regardless, that isn’t going to help with this issue (see my comment above).
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