Those that are not encrypted pass as plain-text through the VM host system (Windows 10).
Some of these connections will be encrypted, some will not. Problem: You are most likely using Ubuntu to browse the web, access file servers, read your emails and so on. I would argue, that with encryption you can hide from automatic generation of statistics about your usage and your files, but a targeted attack against you/your computer by someone in control of the host operating system would render all encryption useless.
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However, since the decryption key is theoretically also accessible by the host system, it would be possible to decrypt the data with full control of the host system and thus the decryption key. That should prevent any software running on the host system to read data inside your VM. Solution: You could of course encrypt your ubuntu home directory or the entire "drive" during installation. Windows does not have native support for the EXT3 format, but who knows. Problem: There is the virtual disk on which ubuntu is installed. But since you asked specifically about Windows/Microsoft, I will not address that. There are also other dangers to privacy such as proprietary software, spyware etc. Long answer follows below.Ī more detailed explanation: A few things pop to my mind that you would want to protect from Windows/microsoft in terms of privacy. Short answer is: it depends on what you want to protect.