Azure: yes, all the major cloud providers should migrate all of their use to their cloud. If their cloud doesn't support something that's a problem for their users and they need to fix it ASAP.
O365: Same thing.
VSCode: Developer tools such as IDEs shouldn't be mandated (and weren't when I worked at MS) but if one is mandated it absolutely should be their version unless there's a strong technical reason otherwise (for instance, if they were using Java there are better choices).
Windows: Again, most good shops don't mandate what your desktop environment is
Mandating a single communication platform is absolutely the right move. And the fact that MS picked Teams as that single communication platform is beyond obvious. What else could they have chosen?
Is it, even if there will be productivity losses? Is making your teams less productive "absolutely the right move"?
From an outsider's perspective of MS and Github, I think it's the right move.