Microsoft definitely does underpay the market significantly! Like 60% of what other companies of the same level pay, unless you're in the Copilot org. Maybe you'll get a little bit higher.
I left in 2018. I was 63 (first level senior) and had offers from Google and Meta for a downlevel (L4) at a 40% increase in total comp. The gap has closed slightly in the last 7 years but not much at those levels.
Amazon is in the same ballpark AFAIK, but the other two have noticeably better comp. The "Microsoft deal", such as it is, was that it's a place where you don't have to grind hard. This has changed now though.
The common wisdom at the time was that different divisions of Microsoft had widely varying cultures, with as much difference as you'd expect to see between unrelated companies, so perhaps that was just DevDiv.