Office and WinDev teams are the main reason why Longhorn failed, their collaboration with DevDiv wasn't particularly stellar.
They were pretty happy to redo Longhorn ideas using COM instead, then rejuvenating it into what is now UWP, naturally creating an incompatible .NET stack in the process, which might finally be done with when .NET 5 gets released.
Also Office team is so deep into C++ they even maintain their own VC++ branch.
You won't see those guys touching anything .NET beyond the absolutely necessary.
Otherwise I agree. Blazor will never be what they imagine it will be. And why should the office team migrate to another tech stack. That is wasted money.
On the fist project I was able to build out small apps almost twice as fast as react. And this was with 1 day of previous blazor experience before the first project.
I will believe the Blazor effort if they start rewriting Fabric UI components with Blazor.