Pretty sure by you having this malware submission feature enabled you have given a limited license for them to execute the binary. You're barking up the wrong tree.
I don't think a virus is relevant here. I'm not a lawyer, but the idea of a "terms of service" for an unwanted and maliciously installed executable seems nonsensical. Virus authors can include whatever TOS they want, but the "user" hasn't agreed to the TOS practically by definition.
Perhaps. It seems that this option is enabled by default, though. I imagine something about this is buried in the pile of agreements you have to click through when installing Windows. What's the status of current legal understanding of the reality that EULAs are bullshit and nobody ever reads them? Maybe I could win something from Europe via GDPR complaint if I compiled an executable containing my PII only for it to be exfilled by Microsoft?