But in the end that PIN is still different from that Windows/Microsoft password. The PIN only works on that one device and gets totally invalidated after only a few failures. This is untrue of passwords which usually never get fully invalidated and are then used across multiple devices.
If you manage to find out my PIN to log into device A with my Microsoft account is 1234, you don't have access to my Microsoft Account in general or on device B. If you see I log in to my device A with hunter42 (my Microsoft account password), you can now log in to my Microsoft account and every other device I'm using my Microsoft account.
Is that a difference without distinction? I'd say that's quite a bit of distinction! And that's only one of the many differences!