This isn’t file backup. This takes a screenshot every few minutes, OCRs it, and stores all that in an unencrypted SQLite file in your user folder for anyone to grab.
Basically anything on your screen is recorded and stored, theoretically forever.
Exactly. You know how people are suspicious that they were talking about something and later see ads for it? Microsoft will now capture all your inputs to build an ad profile. "It doesn't leave your computer," yeah your computer just makes hyper-specific requests for ads.