The best embrace and extend strategy would be to include lots of FOSS software pre-installed, and have an app store with more open source options. Windows could then be sold as a "batteries included" premium product. The average consumer would have no idea that the software was initially developed by someone else, and why would they even care. It would show a clear advantage over IOs and Android. And it is what a lot of customers actually want.
Could always end up as Embrace, extend, extinguish v2.0 - but here's hoping they get it right this time
https://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish