Yes, Winston blocks anything unnecessary for the proper operation of the particular device. For example, we do allow Windows PCs to send a DNS request to NCSI because that is necessary for Windows to show that the PC is online. Another example we block Alexa device metrics from the Alexa Dot/Echo because these aren't necessary for those IoT devices to run. We are constantly refining our privacy protection in the Winston Privacy Lab.
For any software you actually do want to allow to "call home", you can override specific domains to allow them through if they are blocked.