Most of those folks (judging by my own friends) had very low expectations which ChatGPT blew out of the water. When they read "Microsoft search with ChatGPT" they are looking for integration of at least somewhat known quantity into a not so great (perception-wise) search. Win-win. If that bot stumbles in demo, no big deal. They already saw 100 examples, 95 good and 5 goofy; adding one to either bucket is not critical.
Google AI bot is an unknown quantity. Google search is (again, just perception wise) the leader in the search. When the bot stumbles it is a big red flag.
I really do not know why Google rushed it out instead of coming up with a friendly "hey, play with our toy first" approach. With this approach the bot can be iterated and made cool (hey, we can pair it with a stable diffusion-like painter for kids; or a lullaby composer; whaterver). Once cool, then it is "hey, you know, you can start leveraging it from the google search tomorrow". Screwups like this really make me think Google's rot is very broad. My 2c.