My favorite part about this "helpful" prompt is that "no" is tiny text at the corner of the screen, and the yes-please-change-all-my-defaults button is a giant "ok".
It's not going to be illegal anytime soon, but in the meantime, you can punish them by moving to Mac, or Chromebook. I did that after an update that went too far
Chromebook is worse. They pioneered the "in order to use this device which we let you pretend to own you must first attach yourself to our borg" model.
If it's got any data protection impacts, it is illegal in Europe under the GDPR. However its enforcement is significantly lacking even against very obvious and blatant breaches, so anything slightly more subtle has no way of being addressed.
This kind of behavior should be illegal, IMO.