So just as an example, Facebook's login page has "it's free and always will be" prominently displayed. Your logic is that if Facebook switches to a purely subscription model and avoids getting nailed in court for lying specifically (either through legal gymnastics or by settlement), then they didn't actually lie? And if Recall is "supposed" to be analyzed on-device but all your personal information somehow makes it to MS servers, they haven't lied to you unless someone successfully sues them in court?
The data is not small. If it was being uploaded, you'd notice.