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Policy2026-08-25 · source-backed
Xusheng Li of Vector 35 reverse-engineered Watermarker.dll and found Paint and Photos build an 18-byte message of 0x4c plus a 16-byte server-issued GUID plus a checksum, expand it to 144 bits, and place each bit at least three times using content-adaptive block-domain steganography (xusheng.dev). The same GUID appears in signed C2PA metadata under com.microsoft.invismark.1. Four XOR-obfuscated .onnxe model files ship locally so generation runs on-device, but the prompt still round-trips to a Microsoft server that returns a moderated prompt plus that GUID, and the app's visible-watermark toggle doesn't control the invisible one. Applies to Cocreator and Image Creator output, not hand-drawn images.
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Microsoft criticizes Claude Code / Shared entity: Microsoft / Shared topic / Earlier coverage / Tension
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Microsoft competes with Google / Shared entity: Microsoft / Shared topic / Earlier coverage / Tension
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Microsoft released Critique / Shared entity: Microsoft / Shared topic / Earlier coverage / Tension
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Microsoft supports MCP / Shared entity: Vector / Shared topic / Earlier coverage / Tension
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Microsoft competes with Google / Shared entity: Microsoft / Shared topic / Earlier coverage
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Microsoft uses AWS / Shared entities / Earlier coverage
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Microsoft released Copilot / Shared entity: Microsoft / Shared topic / Earlier coverage
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