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[A]n INI configuration file in the Windows Canary channel, discovered by German website Deskmodder, includes references to a “Subscription Edition,” “Subscription Type,” and a “subscription status.”
The article addresses literally all of your points. Installing windows would be free for oems so it’s actually good for them, and MS would probably offer a free tier with ads for end users who don’t want to pay.
To me that’s completely believable and sounds exactly like something MS would do.
Probably AD free+AI features are behind subscription, and in sense I would be Ok with it.