I'd like to think that Microsoft isn't dumb enough to forcibly unhide and install updates that the user has chosen to hide.
Microsoft has even provided a tool to hide updates in Windows 10:
http://www.ghacks.net/2015/07/27/microsoft-releases-tool-to-block-windows-10-updates/
From the link above: "Windows will not install hidden updates."
I will say that Linux Mint 17.2 simply lets me install the updates I want to install, when I want to install them. There have been no forced updates.
I may be getting far down in the weeds here and totally paranoid, but what the privacy statement says to me is that Microsoft can bypass the show and select process for some updates and install them without your knowledge. Not being a techie, I have no idea whether they have actually done that with Win 7, 8, 8.1 or 10, or are just saying that they have the ability to do so for some future update.