This is misinformed. There is nothing in the GDPR that relates to "exposing" or "transmitting" anything (other than transmitting further from a processor to a third party). GDPR relates to how data is stored or processed. A program can make any number of http requests, for any reason no matter how unnecessary, so long as that PII (The IP, or similar) isn't stored or otherwise processed/transmitted to a third party in a way that the GDPR concerns. The download web server logs is such a storage (which is why you these days clear those every day, or never log IP at all in them).
> Telemetry is not functionaliy and VSCode can execute it's purpose without this connection so that makes it subject to user consent requirement.
No. It's required because the telemetry data is stored whereas the IP of the update request is not. Had microsoft wanted to store every IP of everyone downloading an update, then that database of IP's/downloads would of course have been subject to the GDPR too. The data isn't less sensitive just because it was from a necessary function. Microsoft's responsibility for that data is exactly the same.
But the easiest way of doing telemetry properly and not worry about GDPR is to not store anything that is PII at all. And it's pretty easy to do so too. Nothing is "Truly anonymous". Telemetry is usually pseudonymous. But it properly pseudonymous telemetry is normally not a privacy concern in any way. The true gripes about telemetry (there are a few valid ones) isn't about that, they are
- People getting a worse experience e.g. a slower product
- People not trusting the companies to adhere to the GDPR with the data transmitted, e.g. you might not trust the server to clear IP's from the transmission (basically the only piece of PII that can't be cleared on the client side because then the package never arrives). But if you don't trust the company to adhere to the GDPR then why would one trust their opt-out does anything? Running any kind of software basically means trust to some extent.
- People feeling cheated because of automatic or hidden opt-in
- People on paid internet connections spending money to send the telemetry.