Microsoft is still expected to field a "new" Windows variant later this year when it rolls out Windows 10 with a refreshed UX. (That UX is codenamed Sun Valley.) Given that some of the interface elements for Sun Valley seem to be similar to what was expected with Windows 10X, based on various leaks, perhaps Microsoft will simply look to the new Windows refresh as the best way it can take on Chrome OS.
Microsoft had been struggling to figure out how to position and deliver Windows 10X for the past couple of years. Initially, Windows 10X was going to be Microsoft's Windows variant for dual-screen PCs, including the currently tabled Surface Neo. Then, officials switched plans, deciding instead to debut Windows 10X on single-screen PCs, both clamshell laptops and 2-in-1s.