MS Defender is not any different from any other AV products and it definitely has its share of issues; one of the reasons to get some other AV is just to get rid of Defender.
It still sends lots and lots of data home. The only difference is we don't know, if Microsoft is selling them. They surely are not selling them openly, but I would not be that surprised to find out they use it for other purposes as well. But they openly do tracking and show you ads in windows anyway ..