Sorry for the hyperbole, but the concern was very real, even if poorly defined.
Today, Microsoft ships even more cross-platform tools (Visual Studio Code) where again, it's required to use GPL tools, and we contribute to others. (I hack on GPL code as part of my job at Microsoft.)
Now, of course, you're right that this was much harder within Microsoft five years ago. And one's risk exposure is different depending on the product portfolio you own (with something like Windows being less risk averse than something like Microsoft Bob). But some very key lawyers with their heads screwed on straight have overhauled our system and it's much, much easier to deal with OSS than it was five years ago. But even then it was certainly _possible_ and actively happening in parts of the company.
The amount of FUD from rank-and-file employees was shocking though. Based on ignorance, but they just weren't part of the GPL world, and didn't care to understand it deeply. So I don't doubt that you may have asked someone and been told "Oh god, don't even look at that stuff". But it wasn't any kind of company wide policy.
I did end up talking to folks that were trying to make such a company wide policy, but even then what they were pushing for was some kind of GPL registry, where if you installed any open source software, you had to register it with the powers that be. I don't think that went anywhere though.
It's true, but it is 'open source', and many of my coworkers were not particularly discriminating among the different interpretations of OSS.
And http://www.cnet.com/news/microsoft-embraces-gpl-opens-hyper-... from 2009 says "Microsoft embraces GPL, opens Hyper-V to Linux with LinuxIC: Redmond is proving that it can compete with open source on open source's terms by licensing LinuxIC under the GPLv2 license."
That said, the concern is indeed real, as http://www.zdnet.com/article/microsoft-admits-its-gpl-violat... from 2009 shows ("Microsoft admits its GPL violation; will reissue Windows 7 tool under open-source license").
I guess it's just easier to say 'GPL bad' than actually explain copyright to every developer.
However, I have to imagine someone else tried or will try that same trick. It's why I strongly account for licenses of code added to any proprietary, code base. It's also why license management software is a real market rather than a concept. Better to avoid GPL source than try to explain to FOSS types in court later why it was accidentally distributed and you didn't really mean to exploit their work without following the license. Who would believe that given how most companies are about giving back?
Whether this makes sense, or is a case of failure to understand the GPL, it does exist.
...so? The point is that the GPL makes it illegal to lock down, while MIT and the like enable it. Yes, some companies will play nice, but they are doing so voluntarily.
I think that's by far the most common use case for avoiding GPL though.