As someone that worked at MS, on a team that worked directly on this issue (among other things) some years ago, MS did figure out better solutions and did discuss it with industry.

MS has an entire forum for discussing these things with industry (https://learn.microsoft.com/en-us/defender-xdr/virus-initiat...) and has had variants of said forum for some time (I think the first effort was in 2010).

Kaspersky was running an SSL/TLS Proxy in the kernel IIRC and didn't want to have to move it elsewhere due to the fact it would require them to rework their product quite a bit.

The solutions MS (we) proposed were agnostic and overall better, the anti-malware industry simply doesn't want to make the changes as these things do impose technical work on existing products.