And none of it has any impact, nobody seems to care.
The comments in this thread are crazy to me. Yes, dealing with targeted attacks by nation states is hard, and occasionally you'll fail. But that's part of the reason to pay Microsoft rather than try to host your own. In that situation the absolute minimum expectation is for MS to follow basic best practices. Nothing about this story suggests they've been doing that, it's just one wtf after another.
And their communication on this has been so bad an unclear that it has to have been intentionally obfuscatory.