You realize that's literally just to fetch SSH keys, right? It's the authentication method so they don't have to provide a default password. It's not some sort of phone-home method.
I, like GP, noped out as soon as I saw the SSO requirement. I also noped out of Microsoft's /free/ embedded offing for the same reason.
I don't care why it's needed. I'm not interested in voluntarily tying my business to your product if you're going to restrict access to it this early on.
I'm not going to use an OS that you can't login to without it phoning home to a third party.