CrowdStrike’s Falcon software uses a special driver that allows it to run at a lower level than most apps so it can detect threats across a Windows system. Microsoft tried to restrict third parties from accessing the kernel in Windows Vista in 2006 but was met with pushback from cybersecurity vendors and EU regulators. However, Apple was able to lock down its macOS operating system in 2020 so that developers could no longer get access to the kernel.
Now, it looks like Microsoft wants to reopen the conversations around restricting kernel-level access inside Windows.
They'd be seriously shooting themselves in the foot if they did that. Most corporations have 3rd party software that they would not be able or willing to give up, software development for Windows would be unable to test and debug, and I know from personal experience that many consumers find the already existing S Mode to be frustrating and confusing.
They kinda already do this. Any .exe you download outside the Microsoft Store requires double confirmation before you can execute it, unless it's from Microsoft.