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?
Good employers don't want to abuse you, and in turn don't want to get abused, drawing a line is something they can understand and their lawyers can get their heads around. "This is mine, this is yours".
However, if that is the case, I’d love to know how so one can implement similar processes internally!