Q. Is this really as harmful as you think?
A. Go to your parents house, your grandparents house etc and look at their Windows PC, look at the installed software in the past year, and try to use the device. Run some antivirus scans. There’s no way this implementation doesn’t end in tears — there’s a reason there’s a trillion dollar security industry, and that most problems revolve around malware and endpoints.
They OCR the entire screen and store it in plaintext?! There is no way… I know it’s Microsoft we’re talking about, but are they really this stupid?
They’re a surveillance capitalism corp first and foremost. All other considerations, including security, are secondary.