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The output stays local on your disk (in theory). So I’m not sure that breaks any rule. But in theory, Apple Intelligence can query it. Again, close to 0 documentation, so it is hard to know how this is consumed.
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In Germany, it breaks TDDDG §25 verbatim, storage of data not explicitly consented to and not technically necessary is already illegal.
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So sue them. You will then learn whether you are right or not.
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I'm from the US, but I did do some research after I saw other commenters claiming it violates GDPR. I tend to agree with them after reading up a bit on it and asking a couple of AIs. Apple can avoid some of the cross-border entanglements, but GDPR does not care where the processing happens, just what the scope of it is, what its purpose is, whose information is being used.

It'll be interesting to see if anybody goes after Apple for this.

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