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Microsoft Paint and Photos embed hidden server-issued ID in AI images, even offline ones

Reverse engineering of Windows Paint and Photos apps found that both send user prompts to a Microsoft server for moderation even when image generation runs locally via onboard AI models. That server returns a GUID alongside the approved prompt, and this GUID gets invisibly embedded into the pixels of the generated image, separate from the visible watermark toggle users can control. This applies even on Copilot+ PCs where generation happens entirely on-device.