How does Apple handle this?

Really not sure if they have any kernel level antivirus products. Although the same question applies I guess to third party hardware drivers. How are they installed? What privilege level do they run in?

Exactly. Either they’re going to make Windows Defender have the monopoly on antivirus and endpoint protection (EU will shut them down faster than a crowdstrike bluescreen), or they will need to grant the access to those providers.

If Microsoft think they will be able to curate every single device driver and other kernel module (like antivirus etc) and catch the kind of bug that caused this error? They’re deluded.

I’ll wait and see what they actually propose before outright ruling it out. But, I can’t see how they do this in any realistic way.