If its processed locally and sent nowhere, why is this a concern? Unless otherwise.
Edit: I phrased it wrong. If MS claims its processed locally, and is like a second eye, why they would provide an exception to DRM contents. This could mean that some data might get sent to MS servers and transfer of DRM content is banned, this poses a legal risk. Who knows.
The thing is now a days smartphones are separated by only software. Pixels are a good example. They can give the camera tech to older devices but chose not to. Almost everything that can be achieved through s/w can be cross platform too, only if manufactures don't put virtual separation.