Without investing significant time, like they did with Dart, they would have a language with a much bigger ecosystem that is faster, already has compile time code generation and better support for data than Dart. It supports ahead-of-time compilation and hot-reload. The only feature missing in C# is compilation to JS, but with WASM is that really needed? Biggest downside of C# is probably that it's not invented at Google.
Without investing significant time, like they did with Dart, they would have a language with a much bigger ecosystem that is faster, already has compile time code generation and better support for data than Dart. It supports ahead-of-time compilation and hot-reload. The only feature missing in C# is compilation to JS, but with WASM is that really needed? Biggest downside of C# is probably that it's not invented at Google.