Microsoft not being terrible was a zero interest rate phenomenon. The news today is a lot worse than just Github not being independent anymore. It sounds like literally the entire development division is being rolled into this "Core AI" business unit.
When Nadella announced plans to double the company's revenue by 2030, it was pretty clear that the enshitifiction was going to ramp up significantly, but it doesn't seem like it will ever relent now that they have to squeeze out more free cash flow to cover all of this AI capex. Windows is practically malware at this point, they've made extremely deep cuts to .NET engineering headcount, and it's just going to get worse.