Because of its truly primitive type system, and because Microsoft already has a much better language — C#, which is both faster and can be more high level and more low-level at the same time, depending on your needs.
I am a complete nobody to argue with the likes of Hejlsberg, but it feels like AOT performance problems could be solved if tsc needed it, and tsc adoption of C# would also help push C#/.NET adoption. Once again, Microsoft proves that it's a bunch of unrelated companies at odds with each other.