This is definitely not that new. There were already a few announcements on news sites last year: https://www.coindesk.com/microsoft-launches-decentralized-identity-tool-on-bitcoin-blockchain

Not only that, Daniel Buchner, who I assume is probably working on this decentralized identity tool(based on his Twitter bio), has been really public about Microsoft being interested in Bitcoin for a while now: https://twitter.com/csuwildcat