On the submission properties tab on my UWP application, I cannot select "No" for the "Does this product access, collect, or transmit personal information (data that could be used to identify a person)?" question.
It is saying "Based on the capabilities your submission declares, a privacy policy URL is required."
I have reviewed my capabilities (which is empty), and I am not using any personal information on my application.
If the internetCapability is enabled, you will be required to provide a privacy policy, as your app could theoretically send any personal data over the internet.
You can easily generate a privacy policy with a tool like this.