I swear people do not understand the point of what microsoft does.
There isn't a team tasked with making teams worse. They're tasked with extracting all possible value out of their product. Part of that value is infromation like where you are, what you're doing, what you're talking about, what you search for, what you actually do for your job, who is around you, what they talk about, where they are, what they are doing, what they search for, and what they do for their job and how everyone spends their money.
All of this is incredibly valuable data to governments, businesses and private individuals that want to advertise, suppress dissenting political voices, enhance useful dissenting political voices, and otherwise manipulate global influence.
They just don't want you to think about declining any permissions, triggering regulatory action, or switching to another platform.