The OS is fully running on the cloud. You will be given a VM. Everything stays there. You may have to take permission to download a file from the VM onto your local device. You don’t get any choice about telemetry.

“Don’t you guys have internet?”

I might have skipped that cycle. Local always.

It’s funny because we switched from thin clients to fat clients some 30-40 years back.

You can be sure that planned obsolescence can be done much easier on these kind of hardware. One tweak from the backend and “oops, looks like Microslop 365 OS can’t run your thin client”

I’m not using it even if someone is paying me (unless someone hacks the firmware, but that’s a different story)