Lots of hand-wringing here on the forums (as per usual)
Look, here's how you need to think of this.
1. Who are MS biggest clients? Answer, megacorps.
2. What would megacorps do if they thought MS was hoovering up all of their users' daily actions into the cloud, including screenshots? Answer, they would SUE THE F*CK out of them.
3. Conclusion? The data will *always and forever* be local only. Anything else would be a disastrous risk to MS' business model.
That is all...
You assume that corporations don’t want that data for themselves. Great opportunity to monitor their employees.