Does Lemmy even know what EEE means anymore or are we regurgitating words we heard from some article now?

So either all people of lemmy don't know shit (you are not included here - implied) or only your assumption is valid: Wrong sources.

What's it going to embrace and extend?

It embraces the Linux ecosystem and DX on windows. Microsoft is extending the Linux kernel and other Linux projects.

WSL has existed for ages and is just a way to run Linux in a convenient container on top of Windows. That's it.

To you, yes. Can you speak for any project? Is there not a single project where the userbase are consisting of WSL users with compatability issues? Did you research about it? If so, prompt sources.

It's not an attempt to "extenguish" Linux, literally just make the development experience on Windows less painful so people don't switch to another OS. This has nothing to do with EEE.

Trying to bundle the userbase in their subsystem is literally rendering a dedicated Linux machine obsolete. If all would stay there the rest of the distro community would extinguish.

Open sourcing it with a permissive license can only be a good thing,

Can it? Contributing substracts work hours from other projects. So "only be a good thing" is wrong. There are more perspectives then just yours.

and again they're doing it to be more appealing to devs and maybe get free bug fixes from the open source community.

You got sources about their intentions? You just said it: They are conquering the labor market of personal devs.

It isn't some grand conspiracy. But of course this community will react to news of "proprietary blob is now open source" with pessimism.

Did you already review the code? No concerns left? How about pulling private servers for data? Is everything mirrored onto their servers? Any binary blobs there? Tracking/monitoring? Is it safe in regards of privacy and security?

Hopefully you see that you ain't holding all answers and opinions of the entire world. Cheers.