The Turbo Pascal compiler was based on the Blue Label Pascal compiler originally produced for the NasSys cassette-based operating system of the Nascom microcomputer in 1981 by Anders Hejlsberg. Borland licensed Hejlsberg's "PolyPascal" compiler core (Poly Data was the name of Hejlsberg's company in Denmark), and added the user interface and editor. Anders Hejlsberg joined the company as an employee and was the architect for all versions of the Turbo Pascal compiler and the first three versions of Borland Delphi.[2]
It would have been business malpractice to spend money on CP/M products at that point.
From memory, I used TP and them TM2 on CP/M to run an automated thermoluminescence rig, then FTL Modula 2. I wasn't very professional at the time, but then no-one was - most of us were working in isolation. Speaking from that perspective, I was not very impressed with Modula 2. The issue was not with the fundamentals, but the way that it was case sensitive and forced you to use caps for all the keywords, so that it was really annoying to type. As a lesser issue, the names used for type conversions between numeric types seemed to have no rationale, so they were easy to forget. I don't remember exceptions in TM2, and they would not have been part of the standard language. They appear to have come in with Modula-2+.
I wasn't there, but dots can be drawn. Niels Jensen, Borland founder, and his team created turbo pascal, then added Philippe Kahn to the mix to head the US company. Niels and his team also wrote a Modula 2 and C compiler, but Philippe instead chose to buy Wizard C, and market that as Turbo C instead.
This lead to a split inside Borland, Niels and the rest leaving to form JPI which released their work as Topspeed C, and Topspeed Modula 2.
My speculation is that Modula 2 was killed at Borland as a direct result of the split.