The problem is they are chasing a 1990s vision of computing, office suites in particular. They're just creating more silos. By this point, they should be working with data and schemas, not documents. Documents are just a by product. Open Source has an embarrassing tendency to think this 1990s vision of a desktop & office suite is an end point, but it's just a distraction Microsoft will always dominate. Open Source would have been better off trying to create a futuristic 3270 but more seriously taking the Web design to heart (including Linked Data).

People are just not that good at organizing in groups and information is too diverse to leave to individuals to categorize in blobby programs with arbitrary fields in hierarchical files and folders, so inconsistency and disconnected work is the result. This is at the height of its bad in government. Now we are at the point where AI can serve as a connector, with careful use (it would have been much better if organizing data had been the main priority of people). For example, referenced documents created by AI on data with a final group review, the perfect use case of efficient and effective AI integration. But Microsoft is at the top of that heap, in terms of information capture (even if it's not accessed by them directly), capability and authority. Meanwhile Open Source is still talking about a new desktop music player and how to use grep.