That companies require you to get approval to work on something on your own time is fundamentally absurd. If I were a carpenter, I would not need permission to make a table. If I wrote ads, I would not need permission to write a book. That we think it reasonable for open source contributions to require company approval show that there is a severe overstepping of bounds on the part of the company.
So like it or not, if it looks like there're a conflict of interest (even if there isn't), people will blame it on the company.
So I don't really think it's so bad that they want to know what you're working on, provided that approval is usually granted.
Given the extremely diverse set of things that Microsoft works on, much of which is likely done without you being disclosed on it, how can you be sure that your project is not a conflict of interest?
No matter what the non-compete says, if you're in CA, you can use your own hardware and non-work time to develop anything that doesn't directly compete with your employer/dayjob and doesn't use trade secrets/IP from the company.
Amazon though is mostly based in Washington, where no such law exists, so sweeping non-competes are legal.
The above is the reason that there is a difference between various FAANG companies. Even if the company policy requires you to get approval, if it really isn't a work-related piece of code, you can simply tell them to pound sand and CA will have your back.
Compare https://apps.leg.wa.gov/RCW/default.aspx?cite=49.44.140 to the equivalent CA law: https://leginfo.legislature.ca.gov/faces/codes_displaySectio... . It's essentially the same wording.
What if you work for a company that happens to have a stake in basically every field of technology?
I don't want to compete with my employer, I just want to write some sound software on my own time and to maintain my ability to contribute in open source administration. It offends me that the state of the industry is such that I'm expected to sign away my soul on taking any software development job.
(The other main reason I won't work for a big is that I don't want to work 40 hours each week but the bigs won't budge on that.)
It was not always this way--VMware has become much more open source friendly over the last few years.
Is this really true? In my company (not FAANG, but a big one), you need approval only if what you do in your spare time has overlap with the work you are doing in your job. What the rest of the company is doing is immaterial.