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They made that a toggle in the standard privacy settings, including in Chrome: Allow Chromium sign-in By turning this off, you can sign in to Google sites such as Gmail, without signing in to Chromium It started out with only a hidden flag for developers in chrome://flags.
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I think it was fixed ~18 weeks later in the next release, or maybe it was 36 weeks if it took 2 releases. I wouldn't necessarily say it's fixed, since all they changed is exposing a user-facing setting. I think it still defaults to tying Google login to the browser profile.
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It used to be that signing into Google vs. signing into Chrome (or Chromium) was completely separate. The main (only?) feature offered by signing into the browser is the option to enable sync and toggle which forms of data / settings get synced across browsers via the account.
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The main difference is that it used to ask you to sign in to enable sync and now when that setting is enabled and it signs in automatically, it will instead ask to enable sync. What they actually did it making it easier to advertise / push the sync feature by lowering friction.
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I'm sure the terms of service was still meant to correspond to enabling sync, and they just failed at keeping the documentation and terms of service up to date with the actual implementation. Chromium developers seemingly just did it on their own without considering those things.
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I think the legal team that wrote the terms of use didn't fully understand how it works in Chromium even before this change, since you could always sign in but disable the sync feature, even though signing in exists almost entirely to implement sync and was worded based on it.
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If you actually explicitly sign into it, sync is enabled automatically by default, since it's the actual reason to sign in to it. When they added the automatic sign in, it didn't enable sync for the automatic sign in, but rather shows a prominent option encouraging enabling sync.
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Still, they always let people sign into it and then disable sync. It makes sense that they would have said signing into it grants consent since it was how the previous workflow works, but it isn't quite right, since disabling sync is taking away consent, without signing out.
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