Microsoft no longer sees Linux as a threat because it isn't a threat to their business anymore. Any damage that Linux can do has already been done and can't be

Microsoft no longer sees Linux as a threat because it isn't a threat to their business anymore. Any damage that Linux can do has already been done and can't be changed. So few people use Linux on the desktop that they have no reason to even be worried in trying to prevent people from using it. All that would do is push developers back towards Mac, which is the opposite of what they're trying to accomplish. Microsoft has seen huge growth under Nadella, and that was accomplished through selling cloud services. Linux does not threaten this business model or the future of the company in any way. There's nothing to "Embrace, extend, extinguish".