So was IE, back in the day, when they first "embraced" the web.
Today's "embrace" is of the web dev ecosystem, which before VSCode's dominance consisted of Jetbrains, other IDEs, text editors, etc.
Now with VScode and Github, they control much of the dev ecosystem, shrink competitors' marketshares by making them free to end-users (subsidized by other Microsoft businesses), expand them with new capabilities (even before secret APIs), etc.
It is really a shame to me that everyone believes Microsoft has changed and would never behave like they did in the 90s and prior. They haven't changed. They just decided -- for a time -- that another strategy was in their best interests. They're deciding that again, and going back to their EEE playbook.
(It also occurs to me that a lot of people here probably aren't old enough to remember 20th-century Microsoft...)