It could just be the memory features.
In my enterprise-seated account I see slightly different options available (vs. my personal account) in the Capabilities section:
Search and reference chats
Allow Claude to search for relevant details in past chats.
Generate memory from chat history (Legacy)
Allow Claude to remember relevant context from your chats. Memory includes your entire chat history with Claude.
The first option was defaulted to on, if I recall.
But it kind of conflicts with the contract we have with them. My company has an enterprise contract that says "no data retention" but then each user can decide to enable it unilateral?
If you're talking about Claude Code it's in ~/.claude/projects/<encoded dir name>/memory/MEMORY.md. So they're not really retaining it, it's just something that your harness loads in.
Not Claude Code. Claude in the browser