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Microsoft word update messes up exams in Denmark
(www.dr.dk)
This is a most excellent place for technology news and articles.
I can't find it right now, but there was a quote from a long time ago by Bill Gates where he basically said that it was fine if people were using Microsoft's products for free because it would get them "addicted". They would rather have people use Microsoft products even for free if it would prevent them from using alternatives.
That's why it's harmful. It's free for students in the short term, but it prevents them from learning how to use an alternative product that will most certainly be free for them to use forever. Students waste those years when they have a chance to learn something useful, and instead get hooked on proprietary tools that will most certainly fuck them over at some point in the future.