Data privacy
Zero data retention and the models V12 is allowed to use.
V12 uses multiple models during a run. Settings → Privacy controls which kinds V12 is allowed to use.
Zero data retention (ZDR) restricts V12 to providers that contractually guarantee your code and prompts are never stored or used for training. The strongest models support ZDR, so most runs are unaffected. The available model pool is smaller, which may occasionally change which model handles a given task. Pricing is the same either way.
Enable ZDR if your organization requires that source code is never retained by a third party. Otherwise leave it off.
ZDR doesn't affect workspace memory. Memory is V12's record of your team's decisions, not something a model provider sees or stores.