You: “Let me explain Embrace, Extend, Extinguish to you”
Also you: clearly doesn’t understand what Embrace, Extend, Extinguish actually was
Microsoft aren’t trying to change Linux with proprietary things that only work on WSL. That would be EEE. Microsoft are just letting you run Linux inside Windows, so people who need or want Linux can do it on their Windows machine instead of also needing a Linux machine.
This won’t stop anyone who hates Windows from using a Linux machine, because this is inside Windows.
Microsoft don’t care what you run on azure, just that you’re using azure. In fact running Linux on azure instead of Windows benefits them because it’s more lightweight so their hardware stretches further.