The primary document covering this topic is the Windows 8.1 and Windows Server 2012 R2 Privacy Statement
Windows Server 2012 R2 includes the “Desktop Experience” feature, which installs Windows 8.1 components (Media Player, Sync Center, etc.). The Privacy Statement notes that installing Desktop Experience enables client telemetry that is otherwise absent in a pure Server Core installation. Best practice: For any production Server 2012 R2 system, avoid installing Desktop Experience unless absolutely required. If installed, immediately run the Disable-WindowsErrorReporting PowerShell cmdlet and set telemetry to 0 via GPO. The primary document covering this topic is the Windows 8
Best practice: On Windows 8.1, always select “Create a new account” then “Sign in without a Microsoft account” (local account). On Server 2012 R2, local account is the only option during install. Express Settings vs
Once the initial OS installation is complete, a secondary "Setting Up" phase occurs where more detailed privacy preferences are established: Location Services Basic: sends minimal data to Microsoft, required for
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What data may be collected during installation