I think people overestimate the awkwardness, here. Microsoft just wants to sell game copies - if they make money selling a really cool experience to Playstation owners, it's a win-win. We would know if Microsoft was envious of the PSVR sales numbers, by now.

They already support the game in Windows Mixed Reality, and the VR is already playable on non-Microsoft platforms through Proton. This seems like a really cool gesture from a dedicated software team that didn't want PS5 owners to feel disappointed buying Microsoft games.

More awkward for Sony, maybe, as this is showing more support for PSVR2 than they have in a while.