I can see both sides here and can't really identify any as inherently better. Importantly, the issues some said the CMA was just bullshitting are identified as a genuine concern by all regulators, so either they are all bullshitting or keeping and eye on future market progression is a Good Idea worthy of regulation.
The CMA's position certainly isn't a soft-touch though. It'd be a lot easier to just go with behavioural remedies and not piss anyone off. Taking a strong stance is harder.
That said, the idea of the free licenses for cloud for 10 years seems appropriate to allow time for the market to evolve without MS having an bought-in advantage. The flat refusal to accept behavioural remedies seems too restrictive; I feel the CMA should have offered a better, workable solution for MS. That said, I don't know how the negotiations went. What MS offered, as little as possible to appease from their business perspective, wasn't enough. Maybe the CMA felt MS were setting up for a nice long-term victory happy to accommodate any cost and without a real interest in capitulating a bought-in advantage, have to be blocked as they only way to prevent this future.
Realistically, the AI will probably have enslaved us all in ten years anyway...