I still like/use sandboxie, the government compliance thing is odd because I haven't come across this on any other software, but I don't use many either
Not sure there is anything that mimics sandboxie like it does. There are other sandboxing software, but they are usually for entire system, and not individual programs.
you could use "portablizing" programs to make a software "sandboxed" but those tend to have their own set of problems, and it doesn't self delete either so not a good sandboxie replacement
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