A few more thoughts. Microsoft doesn't view Linux as a competitor. Why would it? It has less than 1% of the global desktop share. You could maybe argue that Linux is a competitor to Windows Server, but then again, I'd counter with the claim that people who user Server are probably going to use Azure, which runs on Linux and offers users the ability to spin up Linux vm's. Microsoft views Linux as a tool. Their competitors are Google, Apple, IBM, and Oracle.
Also, your last 2 statements just make no sense. They have incorporated Linux into Windows via the WSL with Suse, Ubuntu, Kali, and Debian. They have done so pretty much to entice people to use Windows over Linux. I'm not sure how this is bad? They can't force developers to use Windows. Going back to what I said, a company is improving it's product to attract new users. Why should they care about Linux adoption? That's not their business model.