This started 20 years ago when they tried making all their UI work like web pages, something nobody asked for or liked.
Eventually, like you said, everything became an instance of Chrome. Even their popular programmer editor, VS Code (worst name ever) is basically a web browser underneath, and I _like_ VS Code. I used Multi-edit for about 30 years, only abandoning it for SublimeText in 2019, and then to VS Code in 2020 because that was all I was allowed to use at work. But, VS Code, despite being pretty bloated, is a pretty powerful and customizable tool that becomes a full-blown IDE without much effort. In fact, it can replace Visual Studio for a lot of development work. So Microsoft can still do something well, even if they don't do it in the best way.
But Windows itself is suffering from enshittification at an increasing rate, as nothing Microsoft changes is ever for the sake of the user, but for their own sake. Just look at the hopelessly misnamed "Modern" UI they came out with for Windows 8, where they looked with unfettered avarice at Apple's 30% of cut of every app sold and decided to completely tank their usability and saddle users with a barely functional app store with awful, subpar apps to try to force us all into an Apple-style walled garden just to get that slice of every sale. How'd that work for, Microsoft? Is there a person on the planet that didn't see this failure coming a light-year away?
And don't get me started on "Flat UI", the long decomposed goat spew remains of the Modern UI which still inflicts Windows, making it much worse visually and much more confusing because they punted on all the HCI expertise they developed in the 80s along with companies like IBM and handed all their UI/UX work to a bunch of art-school dropouts who never saw an Apple UI element they wouldn't copy badly.
And since Windows 11, I've started experiencing total system lockups, something that didn't happen to me with Windows 10, or if it did, it was so rare I don't remember. Microsoft stopped caring a long time ago, and now they are actively contemptuous of Windows users, as if they are resentful that they have to keep Windows going, because they clearly don't like working on it any more.
And now they are shoving AI into every crevice possible, although pretty much every company is doing that, so they aren't alone. I can't wait until the AI bubble pops, and the functionality gets distilled down to only those places where it truly provides value, instead just being the 20s version of Clippy.