Besdies, for new PC/Laptops come bundled with Windows, Microsoft has made an agreement made with various retailers to come with Windows (Home edition) preinstalled. So in some ways, Windows is free for the User unless they pay for Professional edition, or whatever is offered today.
Of course, the average user will create a microsoft account to complete the install. :-)
Besides the Windows OS -- it is really the Services they provide.. Azure, Office365, SQL Server, PowerBI, etc. I would say THIS is where a lot of the money comes from... business willing to pay for them!
I work for Companies that are willing to PAY for these things - all for "Support"
If something goes wrong.. raise it with Microsoft. Even if I know what the problem is, it is all about the ticketing system. Throw it to Microsoft and carry on.
Despite the above, Microsoft also have "Free" software. They have started to Open Source many of their software.. allowing Linux support as well as Windows. Visual Studio Code, SQL Server, Powershell, etc.
It comes back to my point. When they presented WSL - they could have provided a "MS Linux" Distro, all promoted as "ease for Windows users" and if it became a popular distro, would have pushed micrsoft to have more control in userland... which would have alienated most Windows users away from Ubuntu, etc.
Like Windows, it is a method to keeping your userbase to rely on what they know overall.
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