Heres an article about them doing it last year, specifically around how much of your data they can use for AI training, so it's exactly the same thing. The article also mentions several other companies doing it around the same time. https://venturebeat.com/ai/microsoft-changes-services-agreement-to-add-restrictions-for-ai-offerings/

Here's another article from 12 years ago about MS changes the ToS of their cloud storage policies to allow them to use all your stored files for advertising and "new features". https://www.csoonline.com/article/545804/microsoft-subnet-microsoft-raises-privacy-issues-with-tweaked-tos-to-share-data-across-the-cloud.html

I can also tell you from my personal experience of using dozens of enterprise MS applications that they all constantly pester you to set up a cloud account, log into it, and link all of your data and activities into this account. In the last few months, every one of them has added an "optional" co-pilot feature that intrusively tries to get me to use it at every opportunity.