First of all, sorry if there is a better place for this post, but it seemed fitting.
I can't tell you how recent this update is, but it's certainly not a welcome change. I would never, ever, under any circumstance voluntarily hand over all of my computer's data to a remote server in who-knows-where. I'd literally rather burn the hard drive myself than just give it away for free. I'm honestly insulted they think that is something we all want by default. Can't be uninstalled via Programs and Features, nor can it be viewed or rated on the windows app store in case you have that turned on.
There is probably a way to locate it and make a firewall rule to block it, might be in the SystemApps folder.
EDIT: It was in the \Windows\SystemApps\MicrosoftWindows.Client.CBS_cw5n1h2txyewy folder, you can go to Windows Defender Firewall > Advanced Settings > Outbound Rules, create a new rule, select program, block and then do the same for Inbound. Hopefully this permanently disables any chance of MS' cloud getting their greasy grubby stripy shirt button cuffed hands anywhere near any file that you've even glanced at.
I assure you this is not how Windows used to operate. LTSC is a more expensive copy aimed at developers who can expect minimal changes and long term support. Them installing this tool on those versions is a very recent development.
Well that's how it goes. It's a gradual process. Once a company culture is ok with these sort of things, it will keep on coming.