The law is smarter than this, thankfully.

Your second sentence is 100% correct. Your first is questionable; Microsoft, a kabillion dollar company has, for years, held itself out to be reliable and safe. And it repeatedly has shown that it is not. That opens them up to some liability here; and frankly deserves to be better held to the standards it (either directly or indirectly) claims.

And see e.g. "Implied warranty of merchantability" as a refuation of the possibility that you can wave this away with a Terms of Service.