It can do that yes - I also avoid some stores that do it. I guess it works for them though as they still keep doing it again every few years.

Sounds like they might have arranged it so that customers have to search for things and hope they impulse buy things they did not intend to. Profit seeking is likely behind the reduced selection as well.

If it sends telemetry, yes. It does not care why it happened, or if there was any danger to begin with.