Microsoft is panicking because Linux market share is increasing rapidly. Now that you can play a lot of games on Linux, AI bypasses the toxic community, and a lot of major media outlets are promoting switching to Linux as a way to de-shittify your computer, they need to take action or lose their dominant position.
Worse case scenario would be that people start buying computers with Linux pre-installed in large numbers, and their bread-and-butter OEM Windows licence revenue starts to decline. AI taking all the RAM and SSDs isn't helping sales of new computers either.
So I think they are at least somewhat sincere about making Windows less of a pain in the arse. Microsoft tends to go in cycles. Enshittify, fix it, enshittify, fix it... Windows 7 was decent, 8 was a disaster, 10 was decent, 11 is a disaster... Hopefully they fix 11, and we don't have to switch to 12.