Hey, this sucks. Unfortunately the MIT license doesn't do much to prevent this and (I think?) their licensing transgression is they haven't kept "Copyright (c) 2024 The Spegel Authors" in the LICENSE file. I suspect if you call them out on it that'll be the remediation.
Did you manage to reach out to any of the people at MSFT you originally spoke to to ask wtf?
Did you manage to reach out to any of the people at MSFT you originally spoke to to ask wtf?