[AbsoluteHawxy]

You're looking for: https://privacy.microsoft.com/en-gb/privacystatement#mainadv... (data seems different on the US site?)

TL;DR: AdvertisingID handles ad tracking in windows and can be opted out of during install, in settings and globally on your account. AFAIK you can also wipe any previously tracked data. AID tracking is unrelated to telemetry.

Telemetry does not contribute to advertising at all unless "tailored experiences" is enabled in settings, and even then the data is mostly used for Microsoft to suggest features and fixes for problems.