More of this please!!!
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The switchover's been ongoing for years as some European governments have moved to Linux, and are going for FOSS for their operations.
GVD JA!!!!!
Laat ze maaris iets zien noorderburen! Hup holland hup!

As someone whose job just switched to D365.. It's been a nightmare.
The detail that stands out to me is that this was the tax authority specifically — the institution with the most sensitive possible data trove deciding the sovereignty question matters more than the migration roadmap. That's a different calculus than a regular ministry would make.
The DPA precedent probably weighed in too. The Dutch data protection authority has been aggressive on exactly this (the Schrems II follow-throughs, the earlier government guidance against US cloud for personal data). Once your regulator has signaled the position, staying the course turns a technical decision into a legal exposure.