I think the problem is, these days the word "telemetry" is totally misunderstood by most "laypeople". And sadly, this is due to much misinformation - often spewed by tin-foil hat wearing conspiracy theorists who hate, among other things, Microsoft.
These nutters think their computers, Windows, or some other software running on it, is spying on them, collecting personal, detailed information about them, and sending that personal data back to bad guys, "Big Brother" or some greedy corporation. And, without any evidence, they are trying to convince the world this is happening everywhere, everyday.
In the vast majority of cases, however, that just is not the case. In the vast majority of scenarios, telemetry information is totally anonymous, non-personally identifiable data about
the connection between the two nodes. The information is then used to improve speeds, bandwidth and reliability of that connection. That's it.
So yes, remote assistance uses telemetry, but it is to optimize the connection - not to spy on the client.