Why would Recall be illegal in the EU?
2. Even if Microsoft ships it default off in the EU and makes it strictly opt in, it's not at all clear whether Recall recording said information of EU citizens from chats, emails and everything else on someone else's computer is lawful. Ie.: just because I sent you a message over Whatsapp or Viber doesn't mean I consented to you processing it with Recall.
3. Even if Microsoft manages to clear the GDPR hurdle and -- that's saying something -- the EP and the EC might still take issue with it: it certainly violates the spirit of the GDPR even if not the letter of it and together with the domestic abuse issue they probably will show the EU is not always so slow in legislating.