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> The host that should deliver the XML files - notifications.buildmypinnedsite.com - only showed an error message from Microsoft's cloud service Azure.

Why is this not hosted on microsoft.com, or something that is clearly tied to them such as microsoftusercontent.com?

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Well, Microsoft often uses suspicious looking URLs for their services. E.g. Office/OneDrive connects to hosts like "oneclient.sfx.ms" and "auth.gfx.ms". So as a user you have to trust these domains and you also have to trust the domain management of the island of Montserrat.

This horrible domain shell-game is really annoying if you have to manage a DNS filter of any kind.

Because registering subdomain on Azure is easy, no need for any approvals. While registering anything under Microsoft.com requires review and approvals - bureaucracy in other words.

Doesn't even need to be under microsoft.com though. Just include the word "microsoft" in it.

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