Their own engineers would get productivity boosts - with copilot already being familiar with data structures, code style, etc. would be a big boost to accuracy.
But also, third party code would end up being more similar. Code style of the whole world would be pushed towards 'Microsoft style', which probably makes hiring easier, less training time for engineers, etc.
And the downside, that is outsiders might learn tiny nuggets of info about microsoft sources, is probably irrelevant when outsiders can already decompile binaries and learn far more.