This is also where MS pushes Azure DevOps because it is inline with their subscription approach for Enterprise Office, Project Management and DevOps. It is really easy for a company that already pays for Office 365 to add on Azure DevOps. It's a lot less easy for the teams to adopt it, but we all know you sell to the front office, not the back.
You can only sell so much to the front office, if it's significantly harder to get things working on Azure, new features are going to ship later if they do at all.
I think the grandparent is referring to Azure DevOps which is a Git / Issues product like Github and Gitlab, not Azure Cloud. Azure DevOps is "fine" though I feel like MS is pushing Github and will deprecate DevOps at some point in the coming years.
I don't think it's a serious player at enterprises either. MSFT is giving away GitHub Enterprise to sell Azure and Visual Studio licenses coupled with other perks. GitLab can't compete on that level and they lose to GitHub/MSFT on a fairly regular basis.
Seems pretty serious to me. I was running my entire CI/CD process with gitlab.com and deploying to k8s clusters before GitHub Actions were even launched.
I don't think Gitlab is a serious player outside of enterprise clients. But that's where the money is.