Recently Microsoft released the link 365 which is basically a thin client for Azure. You can't run anything locally nor is there any local files. It literally just connects you to a desktop elsewhere.
Do you think this is what Windows 12 might look like? I feel like this idea is not practical for average consumers. Maybe they will make something that's like Chrome OS?
You misunderstood. This simply connects you to a virtual machine running in Azure. You have a Windows desktop but it is now a cloud subscription