There's a war for digital ID.
The most costly part of Identification is the last mile. Paying the employee/cop/etc who asks for your ID and check it.
With digital IDs, there's several players fighting to consume that cost as profit.
Microsoft is a huge player. It is the sole reason windows11 requires a TPM device, so that your windows11 device can be used for identity attestation like an iphone can. (I mean, I don't buy that device bound keys are a valid solution, but i'm not the one being fooled in governments around the world to buy this up)
So, no, microsoft will definitely not by the hero of anything here.