They've clarified this many times.
No, they haven't. All the "clarifications" I can find are simply regurgitations of the same ambiguous phrasing.
When you realize that Microsoft have been openly discussing a subscription-based version of Windows, then the phrase, "Free for the first year," takes on an entirely different meaning, now doesn't it? Microsoft has not clarified this, even to discredit it.
And even if MS isn't planning on a subscription-based flavor of Windows, they still have been abundantly less than clear exactly which version of Windows 10 you'll be receiving for free. Will it be a kind-for-kind trade (Home version for Home version, "Pro" version for "Pro" version, etc.), or will everyone get the lowest tier SKU available, probably with Bing plastered everywhere?
It would be nice if I were wrong about this. But Microsoft's history demands that I be very suspicious of Gateses bearing gifts.