Oof. That's a bright red flag: Regulated industry and own laptop? Please tell me at least if they asked you to install a new harddrive and company VPN. If not, the company is probably compliance theater and has no business being in the business. God have mercy on their customers.

How to handle it? If you can afford it, leave and don't come back. If not, bring it up first thing you see your manager, latest on your first 1-1. This can't go on. If he brushes off, check if he intends to work you hard like 996. That usually means they are looking to use your work and find a reason to fire you asap afterwards.

Just out of curiosity: Did you oversell yourself during the interviews?

The only person higher I can go to is the CEO. And yes, their customer is celebrating a birthday today, I am sure they wouldn't be happy to hear about employees working on personal machines.

I don't oversell myself in interviews, most of my work in the last 7 years has been inbound referrals, so it is just a team fit interview most of the time.