Privacy

I could accept that it has to do with azure propagation delays, but the verbiage was explicit about our computers syncing to the tenant. (Vs. data propagating across it.)

I sort of reject the idea that there’s nothing nefarious going on. The misdirect is weird.

Unless they’re salting the hashed data with information they can’t access, they’re just creating a database of faces and fingerprints.
Sure, maybe if their cryptography is good the DB cannot be reversed but they can still use an unsalted database to give match/no match info on scans of faces and fingerprints submitted to it.
But also, I firmly don’t trust Microsoft. They’ve violated our ELA several times - mostly around applying analytics tools to our data without consulting us first. (Like rolling out MS Viva without telling us.)