Why bake it into everybody else's Windows? If you make say a Brazil Government-only Windows which trusts this CA instead, I guarantee somebody crucial in Brazil will buy a 3rd party Windows laptop independently and it doesn't work with this CA's certificates and that ends up as Microsoft's problem to fix, so, easier to just have every Windows device trust the CA.
They'll have an assurance from the CA that it won't do this sort of crap, and that's enough, plausible deniability. Microsoft will say they take this "very seriously" and do nothing and it'll blow over. After all this stuff happened before and it'll happen again, and Windows will remain very popular.
I researched the issue a little here: https://alexsci.com/blog/name-non-constraint/
Chrome, which is both the cert store and the client on certain OSs, might implement this limited trust. But Windows can't, except maybe for its own internal services.
Either way, this makes little sense overall. If a CA is trustable, it can be trusted to sign a certificate for any domain. And if it's not trustable, then you can't trust it for any domain. Brazilian companies wishing to use a local CA can own .com domain names, so you'd be preventing a completely legitimate use case. Google almost certainly has a google.br domain, so if the Brazil CA is untrustworthy, they can still be used to attack Google even if you only trust them for .br domain.
That's a silly position to take.
When I lived with roommates, I trusted them. But I also locked my bedroom when I went out. Because there's no good reason to rely on trust when you don't have to.
It would be like restricting trust in a CA to certificates for sites whose name starts with a certain letter. It's exactly as meaningful from a Web PKI perspective.
Could Microsoft make it so that Windows only trusts this CA for certificates on domains whose name starts with a "b"? Sure. Would it help with anything? No. Would it be actively harmful to companies whose name starts with A that are using this CA? Yes. The same thing is true for domains whose name ends in .br.