Linux isn't the problem. You're right that linux has improved significantly, but pretending that windows is what Microsoft sells these days is a hilariously bad take. Windows makes up maybe 5% of the total revenue at Microsoft.
Governments and companies aren't buying Windows, they're buying the entire Microsoft ecosystem. This includes an operating system (windows) and desktop office software (office) but also everything from identity management (Entra), e-mail servers (Exchange), Cloud Storage (SharePoint/OneDrive), Task Management(Outlook/Planner), Communications (Teams), Automation (Power Platform), Data Analysis (PowerBI/Fabric), etc.
You could drop windows and office, use Linux and Libre office instead and it would still be a good idea to pay for M365 subscriptions for the rest of what's happening there.
They're forcing people to the cloud, you're right, but if they didn't you would still want to force yourself into the cloud by running critical services in a datacenter for your organization. Doing things in the cloud makes a lot of sense.
Individually specific open source alternatives can be better than their Microsoft equivalent, but taken as a whole bundle that needs to work for your organization, it simply doesn't make sense.
Fuck developers, I'm talking about USERS. A 10,000 person company isn't 90% developers, it's 10% developers and 90% people who just want their shit to work every day.