I'd wager many software startups out there would consider their code valuable IP (even if in the AI era it's not), and don't have these types of IT controls in place. Startups I worked at gave you an email account, github access to their private repos, and that was that.

Heck, you don't even need to mix up a personal and business AI subscription. For the vast majority of folks one day their IDE "updated" and a bunch of AI features suddenly became available. Free, no sub needed. A dev starts using them (because, why not?) and lo and behold the company's code got shipped out in an inference call and is now scheduled to be in the next training run. Oops.

You are merely describing companies that aspire to consider their code valuable IP, not companies that actually do so.

IDE updated? It’s the company IT’s job to perform testing before distributing those updates. And also their job to use whatever managed settings to disable those unmanaged AI features.

How's that any different from, say, Windows updating and backing up the company's code to OneDrive?

Actions speak louder than words. If the company doesn't even supply and require work devices, they don't effectively consider their code to be valuable IP.

Is Microsoft mining their customers' backup files looking for source code to ingest into their model training pipeline?

Of course the company can still consider their code to be valuable IP.