Its purpose was to make .NET interop easier with C++ libraries and has been quite successful at it, instead of having to play around with P/Invoke until everything works properly.
Regarding Windows, Microsoft is pretty much on the ongoing transition to C++, where these kind of issues are easier to tackle.
I bet their goals regarding Checked C have more to do with the adoption of UNIX (Linux/BSD) based technologies for Azure deployments and IoT devices like Azure Sphere.
We always just say "hmmm... right... this one may look a bit better than the previous one (or doesn't)" and we never bother to use them. After 20 years like this, we can conclude that we like C as it is and are not interested in extra layers.
This says a lot about how little the industry cares about software quality. You'd think a bunch of people who make a living out of automating tasks would happily use tools that automate the checking of an importnt source of bugs. Instead, many prefer to use tools that look simpler on the surface and then end up manually testing for the same kind of bugs over and over. So you have people writing in dynamically typed languages who rely on (manually written!) unit tests to check that their program is not mixing up types, and others using unsafe languages and then relying on tests to catch memory access violations. Inevitably, tests never catch all issues and you end up with type errors and segfaults in production.
In the case of a "safer C" I suspect it's largely because it never materialized. C still has its deficiencies relative to Rust, but Rust is the first viable competitor.
But the OSes they were tied to were killed by UNIX's adoption, just like the browser has helped JavaScript to take over areas of other languages.
However funding that work is a big problem, since it mostly benefits others.
Mentalities are very hard to change and we all know that only lousy programmers make errors in C.
Since P/Invoke can't marshal C++ classes, Managed C++ gives you a way to expose such things. It's a very special-purpose chimera.
I hope this works out better than Microsoft Managed C++.