Giving them your settings provides them (and anyone they sell it to) with more insight about you and how you use their software. This is valuable data and it kind of drives me crazy that articles refer to this as a free option. It isn’t free. It’s Microsoft pricing something low enough to get sales from middle of the road people, while being high enough that a lot of users opt into the backup option. It’s a poorly veiled attempt to extract more of you for their training, their ad sales, or their targeted sales.