Xbox App spying on Steam activity on Windows 11

Why is the Xbox app while not running gathering information about apps like steam on the PC?

It's displaying the games one has played on steam, amount of hours etc etc. Even when you set yourself on offline on Steam the Xbox app just completely ignores this and feel the need to keep spying on whatever you do on another platform. This is absurd and should not be allowed and most definitely not be publicly displayed for anyone to see. I'm already done with all the intrusive Bing adds that pop up everywhere in Win 11 and now this. Please tell me this privacy issue can be addressed otherwise I'm done with Microsoft Windows and will switch back to Linux where I do have control over my OS.

:)