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Microsoft is launching Microsoft Execution Containers (MXC), an OS-level declarative boundary system designed to mitigate "agency risk" as AI agents transition from passive text generation to autonomous code execution. MXC implements a hardened sandbox within the Windows kernel and Windows Subsystem for Linux (WSL) to isolate agent processes, utilizing a declarative policy model to restrict system calls and resource access. By shifting security from the application layer to the platform layer, MXC aims to neutralize prompt-injection-to-RCE pipelines and prevent unauthorized system state modifications, integrating with the MDASH framework to secure the AI lifecycle from development to runtime.