Not knowing for sure, your data is probably used for common purposes, like browser. That's what cookies are for, etc. Not dangerous, primarily, but... Everyone just wants to get you, okay? I wouldn't mind getting your wallet, either, eh?
My question is, I thought, simple. What does Microsoft use my data for? Do they mine it and sell info to data brokers? Share it with Google? It is nice that they don't use it for THEIR advertising, but the statement leads to many questions. As a small business owner who must keep client info secure and confidential, I'd like a statement like "we do not use your data for any purpose, and we do not allow others to use it either." The best of all possible worlds is where the data would be encrypted, Microsoft does not have the key, and only I could have access. Kind of like if it were stored on my computer, encrypted, and guarded by two rabid dogs and a 7 foot tall dude equipped with a monster sword and AK 47. Inside a vault. In Superman's Ice Palace.