I'm guessing they are making an implicit distinction between access as the user, vs with the privs of the user.
In the second case, the process has permission to do whatever it wants, it elects to restrain itself. Which is obviously subject to many more bugs then the first approach.
If someone (Copilot, in this case) has built a search index that covers all the files on your computer, and left it accessible to your user account... yes