Later, they comment:

I've learned today that you are sensitive to ensuring human readability over any concerns in regard to AI consumption

Their takeaway from

1. They reject with one of the reasons, and the only disclosed reason, being AI is worse at reading the form
2. Community says AI readability should not be a priority over human readability
3. That it may not even be a problem for AI to read
4. Suggest at least considering an improvement in a form that both can read well

is that the community wants to "ensure human readability over any concerns in regard to AI".

I don't think this is only about MS or being overworked. Yes, it was a harsh push-back. But they're responding passive aggressively, claiming the community pushes the other/an extreme when, to me very clearly, it does not.

Maybe you can say that conclusion is also due do being overworked and not investing the time to read through the comments. But I dunno. There's no need to reply in that passive aggressive tone and claiming unreasonable things.