They understood the GUI couldn’t be everything but NIH was definitely in full swing at that time. It was enforced from the top: If you wanted to use an external product and MSFT had a competitor you needed VP approval. Same went for Open Source. Only the most senior people would even attempt it, and it was understood they were spending political capital.
The one place this didn’t apply was your choice of code editor. You could use whatever you wanted and that had long been tradition. I spent a lot of effort getting VIM to work only to realize it didn’t scale well to multi-million LOC code bases.