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It is not even a thin client for Azure. It is a physical front end for one specific, Azure based VM product. It doesn’t even support AVD which would have made it interesting for lab and classroom setups and given it a bit more utility.

Possibly. University networks can be complicated. You have a large number of students who change yearly, a large group of faculty who tend to enjoy more privileges and autonomy than a corporate employee, lots of different IT departments, lots of tech debt and legacy apps/equipment, likely not enough funding and typically a difficulty attracting and keeping IT professionals who can usually make more money in a corporate job…

And even if they did catch it immediately it takes time to assess the breach, talk with lawyers and law enforcement, determine the scope of the issue, contract a company to assist with notification requirements, identify everyone whose data was breached, identify likely addresses for those people, draft notification letters and press releases, get those drafts approved, etc.