To be clear Microsoft is still a great company,
but that doesn't mean they are incapable of making bad decisions.
The question here is not if they are incapable of making a bad decision or not, but rather that you explicitly said they made a bad decision by not investing in BTC. When they voted against adding BTC to their balance sheet, they were very well aware that its price can rise this high, which is why they particularly mentioned volatility as a reason why they wouldn't make the acquisition.
Their concerns remain valid, BTC is volatile, you and i choose to be exposed to it, Microsoft and Warren Buffet choose otherwise, that does not mean they are bad decision makers, when they obviously make much money from other investments they consider better and much more 'predictable.'