Is Windows Malware?
At every point they are pushing one drive, and other services. Basic local tasks hang because I’m assuming Windows is connecting to a server for telemetry.
Looks like they found an effective way to get around anti trust and abuse their monopoly position in OS and Office.
It is a botnet. Microsoft has never been able to stop computers running Windows from becoming part of botnets. Now these computers are all part of the "Microsoft botnet". Redmond can remotely control computers running Windows, e.g., to install "updates".
Same thing with macOS (pushing iCloud and other junk), as well as many other websites. People want their cashflows ensured. It definitely sucks, but I've started moving to my own solutions for stuff (S3 instead of some garbage overpriced solution from Googlapplesoft, or my own note system) and it feels better. Only you can prevent forest fires!
They have a telemetry service (compatibility telemetry) with a bug that kills your CPU for years now that certainly fits the technical definition of malware just fine.