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Personally, I’ve never seen anyone claim this. At least anyone who one would think is informed on these matters.
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duck.ai et al? my chatbot claims its architecture provides some level of privacy yet it is honest enough to point out none of these systems are actually audited and "not stored" and "anonymous" does not mean "not monitored".
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I haven't seen anybody claiming this for consumer/free accounts anywhere.

You get privacy if you're a big corporation that needs to make sure OpenAI/Google/Anthropic can't read your trade secrets etc.

But those contractual privacy protections have been in place for a long time. It doesn't have anything to do with AI, it's been the same with Office365, Google Docs, etc.

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Who claimed this? I've never seen that claim.
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Every single person who has told people to use LLMs with their proprietary information and code.
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No sane person claimed this.
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Uhm, those people never existed? Or maybe you just have very interesting friends?

LocalLLM enthusiasts exist for a good reason.

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