[vanattab]

I don't get your point? Doesn't that just mean if you fork the project you can't imply that it is sponsored by Microsoft? I have seen similar clauses in most open-source projects. This seems even more generous in that they don't demand you remove all the trademarks and logos just that you can't use the logo in a way that implies endorsement.

[bragh]

I am not saying whether you should or should not use this product. My point is that before using such products, you need to read really carefully where and how you can use it this product because of the included resources or intended purpose for using this. It is not sufficient to only read the README file and decide based on that.

The key part here is the second sentence "Use of these trademarks or logos must follow Microsoft’s Trademark & Brand Guidelines.". But there can be other such limitations also, just hidden somewhere else.