In this episode, Cody and Katie discuss a massive credential attack on Microsoft 365 accounts, the regulatory shutdown and return of Anthropic's Fable 5, a highly evasive adware threat, and California's new government AI discount. We start by examining how hackers executed 81 million password-spraying login attempts over two weeks, leveraging misconfigured conditional access policies to bypass authentication altogether. We then detail how the US government temporarily blocked Anthropic's Fable 5 model under national security orders before lifting the restrictions after enhanced safeguards were implemented. Next, we analyze NordVPN's discovery of a sophisticated adware kit embedded in 50,000 pirate websites that harvests detailed device specifications and dynamically evades ad blockers. Finally, we close with Governor Newsom's landmark deal securing 50% discounted Claude AI access for California's state and local agencies to assist with emergency services, healthcare, and state workflows.