Oh yeah I just pulled that from a fever dream I had, that sort of thing never happens in real life.

> "Embrace, extend, and extinguish", is a phrase that was used internally by Microsoft to describe its strategy for entering product categories involving widely used standards, extending those standards with proprietary capabilities, and then using those differences to disadvantage its competitors.

https://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish

And what permissively licensed software did Microsoft apply this policy to, exactly? Or is it just an unfounded fear?

Read the link. It has a moderately-sized list of examples from Microsoft. https://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish...

I could not find a single example of "permissively licensed software" in there. Nor do in think one exists. Remember, this is the Microsoft that would not touch open source with a 10-foot pole.

MS did embrace and extend standards, but that is a very different thing from code.

Kerberos. back in 2000.