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I think it's just a scam to make it so they can claim copyright theft on the kernel unless they add it themselves personally. I don't trust microsoft a bit and they are sue happy also so this is just a scam as usual unless they give a free permanent license to kernel developement then it's just a huge chance even doing this.

I don't think it's a scam. But, I agree that MS can't be trusted to do anything less than embrace, extend, extinguish. I think they might be jockeying to become a serious Linux player with full telemetry in any MS Linux released, beyond the MS subsystem for Linux available in Windows 10. Some people would fall for that.

Not only that but is the exfat format more viewable to a hacker. You can read windows from linux but not vice versa. Will this leave linux more vunerable on a fundamental level?

and some people will fall for anything without a thought but that is why they fall for it.