the group policy description explicitly says it does not respect it unless you're using enterprise or education.
> [...]
>If you enable this setting, you can decide what level of diagnostic data to send to Microsoft, including:
>- 0 (Security). Sends only a minimal amount of data to Microsoft, required to help keep Windows secure. Windows security components, such as the Malicious Software Removal Tool (MSRT) and Windows Defender may send data to Microsoft at this level, if enabled. Setting a value of 0 applies to devices running Enterprise, Education, IoT, or Windows Server editions only. Setting a value of 0 for other editions is equivalent to setting a value of 1.
>- 1 (Basic). Sends the same data as a value of 0, plus a very limited amount of diagnostic data, such as basic device info, quality-related data, and app compatibility info. Note that setting values of 0 or 1 will degrade certain experiences on the device.
> [...]
Disabling the relevant service might stop it regardless, but it's definitely not the group policy.