Yes, you can add them to a blacklist on your router and yes someone has already published a list. You can Google it. I looked at it and did a little research into the IP addresses and they are indeed registered to Microsoft. That said, those IP addresses could change on a whim and you would never know the difference. It could prove to be a futile effort to keep up with it.
A business opportunity? ‘Give me access to your routers, so I can keep you updated to protect you from Microsoft spying. Of course, I’ll need to track your internet activity to keep you safe.’ But bury that last sentence in the midst of a 10,000 word terms of service.
But if the OS is cut off from chatting with MS, how’s it going to know the new IP’s to use? I believe they’re hard-coded stop as nor to rely on DNS.