"The "spying" concerns"
You've misunderstood: It is spying by any sense of the word: All of your passwords are sent to MS. Including phone, wifi, email, web-accounts, _all of them_.
Also anything you do, which videos you watch, where you are surfing, all of that. And they alternatively deny and admit that they do that, of course. Just like NSA: "Yes, we have all of your data but we don't collect it".
If that's not spying in literal sense, I don't know what is.