Do you think MS still wants to be in the consumer OS market?

It's low revenue, fairly high expense, and the relevance of "which operating system do you use" is going down rapidly (see linux gaming getting good with MS's help). Businesses.. sure they'll keep using windows and paying for it, since they already have a huge amount of legacy systems/software and IT procedures/institutional knowledge - like IBM still doing mainframes - but consumers don't seem to care about that.

Most people basically seem to use their computer to run a browser, maybe some games, and maybe some office suite stuff, OS doesn't matter too much anymore.

Honestly I don't see any evidence that Microsoft wants anything. Every little fiefdom within Microsoft wants their own thing and no one cares about what is good for the company as a whole. There is at least one team that just wants to sell as many games as possible, and are no doubt looking at SteamOS as potential platform to target.

It's not as if they're the main stakeholder of Windows games on Windows anyway.

Microsoft doesn't give a hoot what platform you use Gamepass on.