It's search history in Workspace, which is data Google already has associated with you and your organization. The difference between retention of Workspace and general Google search history is huge. If you are worried about your searches in Workspace being cached you should probably not be using Workspace for that data.
...I understand what you're saying and there's no dispute in the fact that people shouldn't use these services knowing the privacy concerns. But like another poster said, some people just don't have a choice here. Many non-profits, activist groups, and journalists use google workspaces as part of their core.
This change is dishonest and gives little notice to people who have no choice in using these services for their work.