"Would you like to store a backup for your drive encryption password on Microsoft OneDrive? If you choose not to do so, and you forget your password, all of your data will be lost. [Yes/No]"
And none of that warrants a ToS that says they can use that backup for anything other than helping you recover your data.
> Also, if they use OneDrive to back stuff up (like they should!), the security damage is already done as most juicy files will be unencrypted in MS's hosting and still subject to warrants.
Hence why client-side-encrypted backups are a good idea.