Doubtful at this point. We have Mariner/CBL and are committed heavily to it. Has its own development and kernel teams etc. and is being pushed internally to be the Linux all 1P systems run on for supply chain reasons.
Microsoft themselves may be committed to their own distro, but their customers are overwhelmingly committed to Ubuntu as it's powering the majority of client workloads on Azure.
It's amazing that 25 years from the halloween documents, and 20 years on from http://mslinux.org/, that's the case.
Also amazing how much of mslinux.org is true
Internet Integration -- well yes every machine has an ip stack
More Swap Space -- apparently swap is a good thing for performance
new type-ahead command-line features -- sounds a little like copilot
Graphical Point-And-Click RPM Management -- certainly what desktop linux has
Plug-and-Play For Linux devices which make adding and removing peripherals a snap -- well yes, things like udev
crapd -- insert pottering based commentary
The space vehicle will be running our newest product, SpacePod 2004 -- in reality it's linux that tends to run on mars
Microsoft is working to incorporate the well known "Start" button from the Windows Platform into X Windows' Gnome interface -- I believe Start has been removed from Windows now? I have something very similar in the top corner of my xfce screen though