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IT guy here, Microsoft has extensive remote management tools.
Lets look at Microsoft Intune
Intune/Autopilot - This is Microsoft's device management portal, this allows IT admins to remotely manage Windows 10/11 computers, and includes the ability to remotely erase a computer. Autopilot is a way to assign computers to a company so that when you you boot the computer it will only allow the Windows installer to be logged on to using an account from the company that registered it.
It is even possible to set a bios password through Intune remotely.
Microsoft could easily trigger a wipe of any computer that is connected to their cloud, and then make sure it could only be logged on to by the person it is registered to.
They could also change the password/mfa settings, and lock the UEFI
Effectively locking you out of your computer.
This can all be done through existing Microsoft systems, and I expect that Microsoft either manage all private Windows 11 computers logged in with a Microsoft account in a special instance of Intune or a separate but similar system with similar capabillities.
Now, this means that Microsoft does have the tools to brick your computer for Windows use.
So, uhh.. what happens if a hacker gets access to critical functionality of said services, like wiping out computers? Can they theoretically really wipe out all of connected earth's windows computers? Seems like there should be some serious safeguards against this
There probably are plenty of safeguards against it, but the features are there.