Why is this being downvoted? I’ve seen similar behavior, and it’s not outside the realm of possibility that MS would choose meager context windows and API limits in favor of profit.
A lot of discourse about Microsoft that paints them in a less than positive light gets downvoted without reason, I read a blog post a while back about their "brand reputation farm" that follows social media posts and tries to de-rank or drown out content. If I find the link I'll update this comment.
It's not just Microsoft. All of these companies competing in "AI coding" went to having "premium" requests when using bigger models and then unlimited usage with okayish models.