Suppose a person is running a Windows 7/8 operating system. If she/he uses the TOR web-browser, can Microsoft see what they are browsing? Would that not defeat the point of using TOR in the first place? Does Microsoft not parse through saved/captured data on non-Windows browsers the way it does for Internet Explorer?
Tor browser prevents somebody watching your Internet connection from learning what sites you visit. It prevents the sites you visit from learning your physical location, and it lets you access sites which are blocked.
This statement is valid for Microsoft Windows OS. So to answer bluntly: No.
Following your comment: As by your machine being compromised you are asking if your Tor browser activities are no longer that protected.
From the official documentation you can read:
The User Agent MUST (at user option) prevent all disk records of browser activity. The user should be able to optionally enable URL history and other history features if they so desire.
So as long as you did not change the default settings of your Tor browser, it won't save your browsing history in any file. This way, even if your machine is compromised, your Tor browsing activities are still protected.
Microsoft is able to remotely push code to your machine that will be installed and executed with the system's privileges the next time Windows Update runs (a practical example of this is the new "Get Windows 10" tray icon bullshit that continuously stays running in memory).
So, while they definitely won't be doing this on a large scale (eventually someone will notice and they'll get busted), a targeted attack against you based on your IP or some unique identifier linked to your computer or Windows product key is possible by delivering you some custom malware disguised as a standard Windows security update. That malware could even disguise its traffic as legitimate Windows Update traffic, making it undetectable even when actively monitoring network traffic.
So you'll have to trust that Microsoft itself doesn't want to compromise you, that their government isn't forcing them to do so, and that nobody has broken into Windows Update's servers deep enough to be able to publish and sign the malicious update.
My advice is to use Linux or BSD (use a thin distro to reduce the attack surface and unwanted effects of some greedy distros) if you want to hide anything sensitive from Microsoft or any government.
In short, you only have Microsoft's promise that they won't do that. If Microsoft were to log your activity inside programs for their own purposes, they would likely come under a lot of fire for doing so, both in terms of people being angry as well as possible legal action (especially from government agencies that use Windows). I wouldn't worry too much about Microsoft spying on your Windows programs.
What you really would have to worry about more is spyware. Certain keylogging programs can record everything you type, click, and even take periodic screenshots, and email all of this information to the person spying on you. This would capture everything you do in Tor (or any other) browser.
As a side note, though, don't install any toolbars from anyone in the Tor browser, in case you get tempted to. That might very well be parsing your web page visits for data analytics purposes.