Ryan Smith could the reason be that CoPilot "...stuck to an AI assistant approach a bit long" is that Enterprise users Microsoft is targeting are more hesitant to see AI as a job disruptor instead of a tool. I'm not talking about executive level, but rank & file who are given the tools and asked to use them. As you're probably aware, there are two schools of thought about AI, AI as an augmenter (gives individual humans superhuman skills to make them more productive individually) and AI as a replacer (completely eliminates certain jobs, increasing company productivity). Depending on who your audience/target market is, going with the wrong approach could antagonize your customers, and Microsoft is approaching this market as an upsell to existing customers, so they might be treading more carefully.
Of course this is speculation on my part, and coming from a place where accusing Microsoft of incompetence has not been proven effective in the long run...