Edit: On re-reading, I believe OP was specifically referring to false positives with SmartScreen that crop up regularly, like at https://www.reddit.com/r/firefox/comments/n7gige/ms_edge_blo...
The idea that it applies to trusted vendors like Mozilla shipping code-signed executables is bonkers to me.
Nice way to promote further centralization into services like app stores that don't suffer from this!
Yeah, I actually think this is a case of "don't explain by malice that which could be adequately explained by stupidity" or something.
I'm only a casual Windows user (only use for it games) and never bother to install another browser, Edge works well enough to download Steam and occasionally look up something on the internet.
Earlier this week when it installed the new update I also got the same "use recommended browser settings" dialog box. I think I had disabled 3rd party cookies or something as well as the random junk on the new page, so not willing to click around for half an hour I denied using anything and all went well. I'm pretty sure this isn't the first time I see the "use recommended settings" on this PC, since seeing it gave me an "again?!" reaction.
This is a Win10 Pro that's always been kept up to date.
Maybe a Win10 Home, or some other version? Or was that in a search result (or ad) not actually Windows?