The internal service is Microsoft Copilot, so this is probably just a really really dumb decision.
So only mildly surprised on reading the article to read they are intentionally forcing them onto a specific worse model.
You say that but that's not reflected in the law, and historically the us government has repeatedly created such sweeping surveillance systems. It's highly unlikely they only made it legal, and aren't using it sweepingly considering theyre on record doing so before it was legalized through the act before too...
And as that's international law... It's always kinda a coin toss whenever anyone actually pays it any attention. No real recourse if violated after all.