Every time one of these stories comes out I sigh a little and conclude that it's more showing the failure of modern management practices and the legal environments these companies are required to operate in than anything about employee responsibility. Companies should be judging their people by results. If someone's performance is acceptable then all of these surveillance metrics don't matter. If someone's performanc…
You're not accounting for the many companies where a sizeable chunk of the workforce are "bullshit jobs" and are just there to create work for other bullshitters and/or be there for political reasons to pad someone's direct reports list and justify their salary. This is an major epidemic in some countries and cultures especially in Europe, and remote working threw a big wrench into this machinery by giving those workers a lot more power and perks that are usually reserved to elites within the company.
In this case there is no tangible output to measure, the only "output" is the suffering of the employee and the appearance of them working hard. This kind of spyware thus makes sense to force the employees to "work" hard and not become too complacent/comfortable in order to perpetuate the charade.
I don't expect this being used in startups or smaller/more modern enterprises where the org chart isn't (yet?) bloated and productivity is measurable based on output, but to be fair this is also not a vertical that Microsoft is targeting (nor can compete in even if they wanted to). This is targeted at large, bloated companies where they need to keep herds of bullshit jobs under control and make sure they don't get too comfortable - otherwise it would rock the boat if some low-level employee appeared to "have it easy" more than some high-level director/VP/executive, regardless of their actual productive output (if any). The spyware will efficiently detect such occurrences and make sure they are addressed.