Can Windows 10 really monitor and collect data on all programs that I'm running?

Of course I'm aware Windows will collect data on me just by virtue of using it, and all the UWP apps will collect data for their purposes as well. But let's say I use VLC media player or foobar2000, some people claim Windows will collect data on those programs too and send all data to MS on what I'm watching / listening to etc. Is that actually true? I find it hard to believe

data monitor privacy windows windows 10