The issue that MS tools introduced is broader, because it affects also email confirmation flows during signups. This is less visible, because usually the scanners will confirm emails that the user would like to confirm anyway. But without additional protection steps, the users can be signed up for services that they didn't request and MS tools will automatically confirm such signups.
Thanks for checking if it's the same browser. Some companies don't care about that (cough booking cough) so harmful actors just spam users with login attempts in hope a user will click by accident. And puff, random guy gets full access to your account. I got those every day, if I ever needed to login this way I would not be able to figure out which request is mine.
Will Microsoft automatically authenticate malicious actors, or block yourself from services built with assumptions that the email client won't auto-click everything?
See also this issue which suggests that all links are opened: https://techcommunity.microsoft.com/discussions/microsoftdef...
Note that this doesn't affect all Outlook users, this Microsoft Defender for Office 365 is a separate product that only some companies use.
Indeed it's a bad thing but how bad?
The admins of some web service get a database of emails, send them those registration links, make their mail software create the accounts and? They end up with a service with accounts that they could create without sending those emails, before they send some emails to solicit users to perform some action on their (long forgotten?) account. There is no additional threat unless I'm missing something.
The admins have only an extra thin layer of protection because of the confirmation step but I think that any court can see through it.
Another example would be if a company hosted a web app for employees that allowed signups only from @company.com addresses. In such case an attacker could be able to signup with such an address.
The alternative is to send an OTP in the mail and tell the user to enter that.
In that way there is no link to auto confirm.
However, if you do that ensure that you have a way to jump straight to the page to enter the OTP because (looking at you Samsung) the account registration process can expire or the app is closed (not active long enough) and your user is stuck