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How come Linux doesn't have this issue? Why did Microsoft had to fix TCP with the RACK-TLP RFC when both Linux and MacOS implementations did fine already?

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Microsoft Devs explain this in their "Algorithmic improvements boost TCP performance on the Internet"[1] article.

TL;DR is that they had RACK (RFC draft) implemented as an MVP but w/o the reordering heuristic.

[1] https://techcommunity.microsoft.com/t5/networking-blog/algor...

The linux implementation already had rapid acknowledgements and tail loss probe for a long time. I think it was prototyped there by google.

It's called R(ecent) Acknowledgement and yes the work came out of Google. This is the single biggest change to TCP loss recovery in a decade. It is now a Standards Track RFC: https://datatracker.ietf.org/doc/html/rfc8985. The Windows implementation was one of the earliest amongst a handful and Microsoft participated in the standardization.

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