I would assume they send the IP so that Bing will return location specific search results for weather, local businesses and such. I see no reason to assume malicious intent.
What’s stopping them from performing an offline IP location lookup and requesting location specific search results without sharing the IP with Microsoft?
Yeah their documentation is dreadful, but they could just append loc:countryCode to the query before making the API request: e.g. ‘attractions loc:dk’.. at least that works for me despite some people mentioning this filter is no longer supported.
Not sure how DDG and other search engines that rely on Bing does it, but it’s certainly possible without sharing the users’ IP with Microsoft.