Yeah, pretty much. I don't think they're trying to do the embrace-extend-extinguish thing here at all, at least not in a "willful" way.

Devs I know of that use macOS do it for the "Linux without the jank" aspect - essentially as an "it just works" quasi-Linux distro. If Windows could provide the same experience, or at least a very similar one, I do believe a good number of devs 'raised' on Windows would stay. In my lifetime, I've seen more people convert from Windows->macOS due to wanting to do dev work in a "Linux-like" environment than anything else. It makes sense for MS to want to mitigate that bleed-off.