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The difference here is that valve has implemented the apis for the purpose of compatibility with existing software, which is explicitly a protected use by law.

It's actually not explicitly protected by statute, but the interpretation is precedent in all circuit courts.

And Oracle is trying to overturn that precedent at SCOTUS.

If Value does the work to get Game Pass on Linux working I don't think Microsoft would mind too much.

Many, many projects will (in theory) unless there is specific licensing that open sources the APIs.

If Oracle wins, laws will change because it is a fundamentally incompatible position for our industry.

This is valve's lifeline if Microsoft get ballsy, so even if that were the case I think it's a fight Valve are prepared to take.

No, Microsoft <3 Linux and Open Source.

You forgot to add a /s. Microsoft is happy to let you run Linux applications on their platforms that you pay for.

Microsoft <3 Mono so hard that is now almost defunct.