A whole article about how terrible this is, then towards the end they got clarification from Google and, surprise surprise, it was all an overreaction and they were fear mongering.

“This update is good for users: they can now use Gemini to complete daily tasks on their mobile devices like send messages, initiate phone calls, and set timers while Gemini Apps Activity is turned off. With Gemini Apps Activity turned off, their Gemini chats are not being reviewed or used to improve our AI models.

It’s just giving Gemini more local assistant abilities.