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Am I understanding correctly that this is a bug in AMD's PSP, and that AMD's PSP is the equivalent of Intel's ME? Maybe we need an effort to neuter the former like we have with the latter.

It looks like this is a bug in the Windows driver that talks to the PSP, and not the PSP itself. Yes, the PSP is AMD's equivalent to Intel's ME - both horrible security threats. Unfortunately I'm not aware of any successful efforts to neuter them on recent processor generations, as there has been enough time for the manufacturers to get them "right".

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