It feels like Windows is old and tired. Remember when Microsoft and Intel seemed unstoppable in the 1990s and early 2000s? The momentum is no longer there. The latest bad decisions around AI for Microsoft are just the straw breaking the camel’s back.
When they used to have to fit the whole thing onto six floppy discs, it had to be constrained in size and scope. Today there are no constraints and it really shows. I think having hard constraints, be it storage, memory, cpu, update distribution, product requirements, drives quality and forces hard engineering decisions to fit within them. I think a lot that is wrong with Microsoft of today is a complete loss of enginering discipline and focus; you only have to look at the incoherence of their GUI development strategy to see how badly they are doing there.
I think it would have been useful for them to have really made a proper effort at modularising Windows along the lines of how Linux distributions and the BSDs do things. I can't see any way of recovery from the bloated mess they have created; they can't keep cramming any more in, it's an unstable, unusable and untestable mess.