Earlier quoted context omitted.
That may be how Microsoft would like to portray it but I disagree. A production system is a system that is operated to serve its actual purpose rather than being used as a development or testing environment. From the point of view of in-house IT, the company's email server is a production system. It is what they produce for their in-house customers.
That is how it has been defined at every SAAS company I have worked for. When someone says there is an outage in production, it means your product .
In the current context, this language is part of a pattern to carefully choose words in such a way as to downplay what has happened.
As I said, the work of the CEO, the cybersecurity team and the legal team is part of the overall production process at a software company.