"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, contacts, biometric data, and sensor data — much of which goes beyond what's needed for core product functionality.