"Device, connectivity, and configuration data. Data about your device, your device configuration, and nearby networks. For example, data about the operating systems and other software installed on your device, including product keys. In addition, IP address, device identifiers (such as the IMEI number for phones), regional and language settings, and information about WLAN access points near your device."
Microsoft collects extensive device data including installed software, product keys, IMEI numbers, nearby Wi-Fi networks, and sensor data (e.g., skeletal tracking, step counts), which goes well beyond core functionality for many products.