I think Microsoft saw how pointless their efforts were and dropped it. I think they may still lock your desktop background?
It’s so easy to set up vlmcsd that I don’t even leave temporary virtual machine unregistered, but last time I used a pirated copy on another person’s laptop I had no idea until I noticed the text in the bottom right. Even stuff like backgrounds are easy to change by just downloading third party background software, like back in the good ol’ Windows 7 days.