Windows Telemetry must not be configured to Full.
Some features may communicate with the vendor, sending system information or downloading data or components for the feature. Limiting this capability will prevent potentially sensitive information from being sent outside the enterprise.
The "Security" option for Telemetry configures the lowest amount of data, effectively none outside of the Malicious Software Removal Tool (MSRT), Defender, and telemetry client settings.
"Basic" sends basic diagnostic and usage data and may be required to support some Microsoft services.
"Enhanced" includes additional information on how Windows and apps are used and advanced reliability data. Windows Analytics can use a "limited enhanced" level to provide information such as health data for devices.
How this relates to the STIG checklist: STIG vs SCAP benchmark.