Didn't they already figure this scam out with phone verification? You let the user signup easily and then rug pull them a week or so later forcing them to do the thing they would have balked at if it was an upfront requirement. Now they have to jump through a bunch of hoops to get something they've already put time into working again.
Even if they abandon the account you still made your signup metric go up and probably collected some usage info and maybe PII. And you can also block them from signing up again until they do what you want.
I see you're operating under the assumption that the purpose of telemetry is to improve the user experience. I'm not sure that is even a business goal inside Microsoft.
I think due to perverse incentives it causes the exact opposite to happen. Why did the Windows calculator need to be remade with a much slower and less responsive version? Telemetry probably showed the calculator was frequently used, so a Project Manager targeted it for "improvement" and it was then ruined.
It blows my mind how unresponsive modern tech is, and it frustrates me constantly. What makes it even worse is how unpredictable the lags are so you can't even train yourself around it.
I was watching Halt and Catch Fire and in the first season the engineering team makes a great effort to meet something called the "Doherty Threshold" to keep the responsiveness of the machine so the user doesn't get frustrated and lose interest. I guess that is lost to time!
Even if they abandon the account you still made your signup metric go up and probably collected some usage info and maybe PII. And you can also block them from signing up again until they do what you want.