This looks to good to be true

Most of the MS software they bundle runs natively on linux nowadays.

it seems they’re rebranded from linuxfx to windowsfx to wubuntu to hide previous security issues and shady stuff?

For those who don't know about linuxfx: https://invidious.protokolla.fi/watch?v=6q8iy7yq6_E

the distro is made in such a way that you can install like you would on windows (double-clicking an EXE installs it through compatibility layers)

This is a terrible idea. Compatibility layers add new bugs that weren't present in the original software plus it's a resource hog. Not to mention that WINE is susceptible to viruses targeting Windows too. Newbies better off using Mint or Pop and sticking to native linux applications when possible.