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Windows is far from being free. Buy a laptop, you also automatically buy a license for windows, typically about $100. Build your own computer, need to pay for a license as well. They just hide the cost a bit, but you still need to pay all the same.
I think what they reference is that it is free to upgrade. You could upgrade 7 to 10 and 10 to 11 for free, used to be you have to buy a new one. Now you have one time entry fee to the ecosysyem and then they keep you (though they sidestepped this with some system requirements for Win 11 now)
Fair point, but they'll try to turn it into a subscription before long.
Wimdows as a Service is already a thing.