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Here is an excerpt. The language sounds like encryption is enabled and the chart includes iCloud features as server and in transit protected. Seems like smoke and mirrors then.

> On each of your devices, the data that you store in iCloud and that's associated with your Apple ID is protected with a key derived from information unique to that device, combined with your device passcode which only you know. No one else, not even Apple, can access end-to-end encrypted information.



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