Did they actually use this phrase in their internal comms? The one reference I can find - https://www.justice.gov/sites/default/files/atr/legacy/2006/... - says that Steven McGeady (then VP of Intel) testified that Paul Maritz (then an exec at Microsoft) told Intel that Microsoft's strategy was to "embrace, extend, extinguish". However, I can't see that corroborated by any actual internal communications.
https://en.wikipedia.org/wiki/Embrace,_extend,_and_extinguis...