Microsoft is losing Builders fast. They’re switching to MacOS and Linux. The biggest pull keeping people on Windows, outside of shear inertia, is content creation and gaming. However, even these are falling to Linux.
Without Builders, you don’t have software, and without software, you don’t have users. This is why Microsoft needs Windows Lite.
If a “lite” version removed their ability to spy on you they’d have to charge you $4,000/year for the privilege, just to make up the difference.