From their description it seems like just another tpm - like chip with extra functionality. That “cloud to chip” stuff seems to be marketing bs to me, possibly a tpm like chip that can only be used by Azure services? Doesn’t seem to me that it overrides the os in any way, so Linux would probably just ignore it withou the right drivers.

I have one and I would not consider myself paranoid. I go to school part time and have to login with different accounts on rotating computers. It is nice to have a password manager I can plug into the PC instead of typing it off of my phone or having to memorize it.