Yes, exactly. AI isn't some magic dust that you can sprinkle into your workforce and get more productivity and better results. It is at best a force amplifier for what you already have. If you're making awful and broken products, you will make even more awful and even more broken products at a higher rate than before.
It's not a coincidence that every impressive result done using AI has come from someone with a track record of impressive results before AI. AI isn't magic. It doesn't make you good at stuff you're bad at.
Microsoft had a very specific niche of making completely awful software that wasn't actually broken - in fact, that was often the infuriating thing.
If it just shat the bed completely, you'd have an easy argument to replace it with something else; instead, it would be technically competent (Hi, Raymond!) but covered in stuff that made it infuriating to use (Hi, Redmond!), especially if you didn't live in it day in and day out.