They missed the boat on this, there were rumors Microsoft offered as much as $4bn back in ~2016. Whether that's true or not, if there was an exit to be had that was around the time it would have been viable.

A fully integrated docker desktop + vscode would be a game changer for all involved. Docker + VSCode is already good, but more integration would be way better.

I thought this was the next logical step after Windows started incorporating containers - for several years you saw the two companies get closer together until suddenly they no longer seemed to be on speaking terms. Docker really missed their opportunity here.