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Recording nude Baldur's Gate 3 characters might land you a ban on Xbox
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Uploading does not necessarily imply sharing. I don't share most things I upload to servers, automatically or manually. Perhaps sharing was also done automatically, but that's not clear.
Do you have an Xbox or any experience with their clip system? You can hypothesize based on other systems you are familiar with, but it won't change the reality of what Xbox does.
I just tested it, and you can too. All my clips are available online (most of them are just me accidentally hitting the clip button.) I logged out of my account, searched my gamertag and was able to access them all as a random person on the Internet.
OK, so that's a detail conspicuously missing from the articles I've read. Seems like it's Microsoft's fault.