You have to assume that the state is collecting every scrap of data that MS gets from telemetry. I'm sure MS is collecting a ton of data for themselves as well. As much as the company line might say that PI is scrubbed we know anonymization is a joke, and PI isn't limited to names and credit card numbers. You can learn a lot about a person by the contents of their Prefetch folder, their Steam folder, their internet history, the amount of *.h *.c *.py files are on their drive and how often they are updated etc.

I'm sure on enterprise systems MS is pretty hands off. They've got a very stable cash cow there they don't want to scare away, but home users are probably screwed and you should expect that. MS has been making their opinion of their user's right to privacy and to control what their own computer very clear over the years. They've repeatedly demonstrated a willingness to leverage their OS against the users and their wishes for power and profit. Act accordingly.