When telemetry sharing is enabled, XProtect can send usage and diagnostic information, including information about features and methods being used by the various clients.
For more details about the type of data collected and how it is handled, see:
It is not made clear in any documentation that this is happening when using SDK tools, its sending from my App ( and host ) that uses the mip-sdk, not the main server.
Looks like a opt out setting also , that is enabled by default ?
Yes, the setting that controls telemetry transmission to the Azure Application Insights ingest endpoint is enabled by default.
If it has not been explicitly disabled in the configuration, the telemetry component will attempt to send telemetry data to the configured Application Insights endpoint.