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What happens when their customers aren't their users but instead are government or other corporate entities - or themselves?
Windows recall stores the data locally, but what telemetrically is it sending back? Or if its sending nothing today, what will they change it to send tomorrow? Fodder for AI training data? Sensitive secret or proprietary information?
The worst part about all of this is even if they are being absolutely and completely honest, there is no verifiable way for us to prove this because all of their code is closed source and I imagine to some capacity obfuscated.
So the natural assumption here is that, similar to free-as-in-beer products, we are the product and Windows is the platform by which we are being served.