@Richard Hobbs , Thanks for the reply. I am glad that we find the cause.
For the setting under Device restrictions / Cloud and Storage / Microsoft Account sign-in assistant, if we set the policy to "disabled", it will disable the Microsoft Sign-in Assistant service (wlidsvc) which is required by Windows Autopilot to obtain the Windows Autopilot profile. That will causes the privacy setting in Autopilot profile not applied. So we didn't see the privacy setting hidden although we configured it in Autopilot profile. Here is an article list some conflict policy with Windows Autopilot, we can read it as a reference:
https://learn.microsoft.com/en-us/mem/autopilot/policy-conflicts
Hope it can help.
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