Some 7 months ago there was this submission: https://news.ycombinator.com/item?id=45551504 (Microsoft's OneDrive Begins Testing Face-Recognizing AI for Photos (for Some Preview Users)).

I haven't noticed any further links regarding this topic. Thus I have no idea if setting was fully implemented or abandoned but with this thread here you linked, but I'd rather guess they're full after user's data. And from what users wrote there, MS is not even doing this with some elaborated darkpatterns scenarios but just ordinary stealing these photos. This should be announced louder.