It does, but Microsoft doesn't consider that level of minimalism to be an "end user" use-case, so it's not an option available to end users to install.
Instead, in Microsoft's minds, this is a use-case exclusively of interest to embedded-device system integrators (i.e. the people building the world's ATMs, billboards, gas pumps, slot machines, ticket kiosks, etc.) So that's how they market it: https://developer.microsoft.com/en-us/windows/iot/
Make no mistake, though, you can just download and install Windows IoT Core onto any random PC; and (mostly) arbitrary Windows apps can be installed and run on top of Windows IoT Core.
The only proviso being, that IoT Core is maybe a bit too minimal for your use-case: IoT Core assumes you don't need a desktop (because you're likely remotely managing the device, and deploying a full-screen kiosk-style app that isn't meant to be broken out of.) It still has a graphical "control plane" shell sort of thing, but it's entirely built on the Metro/UWP UX, with no ability to launch programs in windowed mode. (Essentially, there's no window manager running.) I believe this means that Win32 apps that try to spawn multiple windows (e.g. old versions of Photoshop that make the palettes their own windows), won't work on IoT Core. Most modern stuff avoids that, though.
I would note that this "remote-deploy and boot apps in fullscreen, with access to Win32 but not GDI, graphics only though UWP" paradigm, closely mirrors the experience of using an Xbox One in developer mode. I bet the "distro" of Windows used between IoT Core and the modern Xbox are near-identical.