Seeing one of the latest threads this morning about Win11's Recall feature, I'm not surprised that it does what it does TBH
Some of these points overlap with comments I made earlier when news of this feature first broke. I can't easily find those now, but if/when I do, I may amend this post with those notes as well, as they better cover a bunch of other insights I don't think I've captured here as well.
EDIT: Cool, according to this Ars article, they do seem to have put in place most of the reasonable safeguards I'd expect / recommend them to have.