Thank you for an actual response and explanation. Anyone who has actually used google over the past few years should know "googling it" isn't always helpful anymore. Besides, maybe we actually want to be the place where people find answers.
Part of it is probably the perceived legal liability, but another is Microsoft sees the user interest in this type of games and wants to make money off of it. That’s why this announcement comes shortly after the release of Antstream Arcade (which has been added to game pass so they make money from sales there in addition to the portion they take from each purchase). It’s some of the most anti-consumer behavior we’ve seen from Microsoft in recent memory.