Wasn't there a story some while back about them crawling the web for PWAs and putting them on the Microsoft Store (or is it Windows store?) to make it into less of a ghost town? And if you go to their official website, browsing vaguely in the direction of UI development, you will see them advertising PWAs as first-class citizens of the Windows ecosystem. I also vaguely remember that Windows+Edge offers special APIs to PWAs for things like file system access and so forth that are unparalleled on other platforms.
I take this push for PWAs (combined with their own lack of dogfooding -- Office is not written with Win UI) as them basically throwing in the towel on Windows-native desktop software (outside of games, maybe).
But, to be fair, native desktop development has seen a lack of investment on all desktop platforms. JavaFX is a ghost town too.
All of that could change, depending on what happens next with Chrome, Bing, and Mozilla. -- The future of each of those seems to be hanging in the balance at the moment.
The web could become a mere implementation detail of the Google monopoly, rather than the open thing it is today. Couple that with a government-level push for digital sovereignty in the E.U. and other places (certainly China). Then, maybe, you will see renewed interest in desktop GUI apps.
On a side note: I think it's amazing what has happened in the open-source space with Rust-based UI frameworks (iced, egui, slint) and COSMIC. The future for cross-platform desktop UI development hasn't looked so bright, maybe since the introduction of Java Swing (was that in the early 00s?)