Maybe it’s a different contract for the corporate/gov setting, but if the clause is in there, this would it make it non compliant for real work, as basically the copilot contract goes against the normal contract made to purchase the Office suite and the contract intentions, as misleading contracts could be judicialized.
No, it’s just a “don’t sue us” clause. Doesn’t even necessarily mean that they can’t be sued, especially if Microsoft advertises this service to businesses or sells contracts for it for professional purposes.