This is standard in most platforms with social features, companies record chats in case someone gets reported for negative behavior. It's also temporarily stored so they're not just listening in and hoarding your chats.
The terms also lay out that "these recordings are available only if the report is submitted within 24 hours," suggesting that recordings are deleted from local storage after a full day.
We know it's faster, but allegedly Switch 1 games run through a compatibility layer so there was some worry it wouldn't boost performance on old titles. The video confirms it does.
I'm with you... I told my friends to hold off for a few months so they can fix the issues. I'm baffled they still haven't gotten to changing difficulty scaling considering it's just changing a variable, something modders did on day 1. Hopefully the next patch isnt so far away.