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Many of them have demanded Microsoft issue a refund to match the new price, but as Brad Groux discovered, Microsoft would rather you return the handset (which has a 60-day return window) and repurchase at the new lower price than simple credit you the difference.
— Brad Groux (@BradGroux) October 24, 2020
In the end, it seems Brad did win out, and managed to get Microsoft to issue a credit.
Microsoft’s policy is both wasteful of the buyer’s time and resources, and generally wasteful in that it results in a second-hand device which will need to be refurbished.
The reasons are unclear, but hopefully, the ruckus will cause Microsoft to change their practice in the near term.