story
It is a huge company. They can do more than one thing. C#/.NET certainly isn't dead, but I'm not sure they really care if you do use it like they once did. It's there if you find it useful. If not, that's cool too.
I think Microsoft can find the money if they wanted to.
It is a powerful and robust language with great standard library, but you just cant be comfortable with it. All those boilerplate, all those sealed override virtual public protected or whatnot before each statement, those curly braces everywhere. You are always inside classes that are inside namespace, and even then you need to go deeper and have curly braces with properties and arrows in random places. Delegates and Events are ugly and unintuitive, two set of syntax for linq (and honestly for almost any somewhat new feature of the language), ref in out, you name it. It is hard to push something so inelegant.
Delegates and Events were a mistake, but that's a low-level .NET mistake that a lot of modern code can easily ignore, with Action<> and Func<> now reliably almost everywhere and WinForms easy to write off as "dead". (You can especially eliminate the need for the ugliness of Delegates and Events with System.Reactive.Linq.)
Records and Primary Constructors remove a ton of the boiler-plate of writing basic "DTOs" and/or dependency injection.
C# is pretty elegant, and a nicely evolving language. Microsoft isn't any longer trying to bet on C# as a "systems programming language" because too many people see JIT support and VMs as "not low level enough" (including apparently also Anders Hejlsberg), but that doesn't mean C# isn't "future proof".
Personally, I would like them to never touch the game dev side of the market.