That feature, with its shit security, was designed, aplroved, implemented, reviewed, and see by COUNTLESS PMs, engineers, and managers.
No one cared. That culture is rotten to its fucking core. Microsoft never gave a shit about good engineering when I was there, highly preferring to gaslight and go over peoples heads, dare they say that the entire (initial) design of VMSS is flawed, or that maybe just maybe Azure would benefit from a metadata service and machine identities. Literally "controversial" shit that resulted in my manager getting emailed.
Every, single engineer, bar one, that I respected at that company has left. Says something.
I know it's a hot take but people are out of their minds trusting a Microsoft platform if they care at all about personal or business privacy.