They have never demonstrated even a single physical qubit.
Microsoft has claimed for a while to have observed some signatures of quantized Majorana conductance which might potentially allow building a qubit in the future. However, other researches in the field have strongly criticized their analysis, and the field is full of retracted papers and allegations of scientific misconduct.
this is from 2 days ago:
Roadmap to fault tolerant quantum computation using topological qubit arrays https://arxiv.org/abs/2502.12252