Can zerodha use client funds and trading data

does zerodha have prority traders who can use cliant fundz and has access to SL and position to pace trades ?

No technically brokers can’t use client funds at least legally. I think trading data/analysis of its customer can be used by brokers and maybe being a broker of Zerodha’s size gives them slight edge to make investments since they have access to mass trading data at real time and there is no law against it.

Zerodha does not have a prop desk. Plus none of the employees are allowed to trade

but do they utilize our data ?

No. Please check this post.

do brokers use clients trade data (trade executed , pending orders , stop loss orders ; etc etc ) ; for any kind of direct or indirect , official or unofficial purpose benefits ?

Brokers get audited on this by regulators. Here are the security practices at Zerodha.