Microsoft faced scrutiny recently over two separate incidents involving user data and network routing. In early 2025, the company complied with a warrant from the Federal Bureau of Investigation (FBI), providing BitLocker encryption recovery keys for laptops believed to contain evidence of fraud related to Guam's COVID-19 unemployment assistance program, according to Forbes and multiple news sources. Simultaneously, an unexplained anomaly on Microsoft's network was discovered, routing traffic destined for "example.com," a domain reserved for testing purposes, to an electronics cable manufacturer in Japan, Ars Technica reported.

The FBI warrant sought BitLocker encryption recovery keys for several laptops, which Microsoft provided. This raised privacy concerns because Microsoft automatically encrypts Windows 11 Home and Pro PCs with BitLocker when users sign in with a Microsoft account, storing the recovery keys on its servers. This practice potentially allows government authorities access to user data, despite Microsoft's general stance against creating encryption backdoors.

The "example.com" domain is officially designated for testing and documentation purposes under RFC2606, maintained by the Internet Engineering Task Force. It is intended to prevent third parties from being overwhelmed with traffic when developers and others need a domain for testing. Ars Technica noted that the domain should resolve to IP addresses assigned to the Internet Assigned Numbers Authority, not a commercial entity. Microsoft has since suppressed the anomaly, but the reason for the misrouting remains unexplained.

These incidents come at a time when Microsoft's priorities regarding its Windows operating system are being questioned. According to a Hacker News article, Windows, once considered Microsoft's "crown jewel," has seen its role evolve since the launch of Windows 11 and the introduction of technologies like Microsoft Copilot. The article suggests a shift in focus, moving away from Windows as a central platform for all devices.