Windows will no longer have an integrated basic rich-text-based word app.
Microsoft: We can’t spy on your usage when you use wordpad, use O365 instead! (guessing since MS recommends using O365 Word in its place).
TBH, I haven’t used wordpad since Windows 98. Not saying others don’t use it, but Notepad++ and a myriad of other options are better anyway.
If they just wanted telemetry they’d just “enhance it” they way they did with the monstrosity that is new Paint or AI assisted notepad.
On a default install on NP++ you can only save as rtf, but there are addable plugins that give some rtf functionality. So as a direct answer, no, it doesn’t, but it can.