If you can’t trust Microsoft with a wallpaper app, should they be trusted with the whole operating system?
Installing all of this unwanted code behind their users backs is not making a strong case to continue to use Microsoft. Instead, people will jump to alternatives as soon as its more viable.
Increasingly easy jump, that various people can make, is to the Android OS. There are increasingly, customized open-source "distros" that can be installed. Prime OS, Bliss OS, Phoenix OS... Particularly for laptops, as many already are using it on their smartphones, so will be quite familiar and comfortable with it.
Then there are the Linux distros aimed at Windows OS users, like PoP! OS, Linux Mint, etc... Microsoft is likely to find itself with increasingly diminished market share, with such unnecessary antics and continual privacy issues.