I can tell you from personal experience that the only reason Google Workspace doesn't "work" on Firefox is because of user-agent sniffing and similar countermeasures deployed by Google. There's absolutely no technical reason that the disabled features cannot work on Firefox.
> So how is what Microsoft is doing, different?
It's in fact not.
> They are only fully supporting Microsoft Edge (much like how Google only supports their own browser)
No, they are only fully permitting Microsoft Edge (much like how Google only fully permits their own browser).
This isn't a setting that allows admins to force a browser for security.
This is obviously about MS trying to force the uptake of Edge and nothing more.