They lost the server space, but they're retrying to seize desktop from Linux with WSL and invading the developer tools space and trying to isolate Desktop Linux as an "irrelevant layer which runs MS software and technologies, which is not visible and accessible as the laymen", and Linux server as a layer "which you don't need to think about" (i.e. make Linux irrelevant as a whole OS for developers at scale).
Canonical is helping them with this endeavor, because Ubuntu desktop doesn't make money. If they can piggyback the userspace to Windows and earn money from servers, they're kosher.
It's really ugly. However, De Icasa is not a saint either by pushing Mono on GNOME and Linux and allowing some borders to dissolve to allow Microsoft in, regardless of it's intended or not.