Seems a stupid thing to sue about. Microsoft has rules about the content you want to sell through them, the content they're essentially endorsing.

That sounds reasonable.

If you want to make something outside their content limits and you expect them to endorse it... Why? That's not how anything works.

Which was what was done with the weather mod. Mojang didn't like it because what people really want for weather mod is hurricanes, mojang don't like anything too destructive like that which you can kind of understand, you can't really do a normal playthrough with it on.

It makes it a totally different game.

But I don't think anyone really cared and I don't think it's had a particularly adverse effect on the mod developer, they've got plenty of backers I doubt there's any interest in suing mojang over it.