anyone also encounters this?
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What update? From the app store? Can you add more information?
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That is completely false. A few years ago they floated the idea of on device scanning, after pushback they decided not to do so.
I believe that you are thinking of Google, who does not do on device scanning either, but will happily contact law enforcement if you send photos of your own child, for medical reasons via their services. They will also suspend all your accounts with no appeal.
In any case, neither your answer, or my reply have anything to do with the original post.
Removed for misinformation.