We got an urgent notice today from our central IT group warning of this catastrophic screw up of epic proportions, and I could hardly believe it.

This is way worse than the Crowdstrike debacle.

"or paying for the required license?"

Where was the acceptance of a contract requiring that? Microsoft just gave people a free upgrade.

I imagine the definition of "upgrade" depends on the needs of the customer. The merchant of the license is inherently unable to evaluate this. Installing software without explicit consent, especially not-functionally-equivalent-software, is inherently wrong.
Discussion (75 points, 18 hours ago, 26 comments) https://news.ycombinator.com/item?id=42057451
  • ahoka
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  • 2 hours ago
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“installs itself” = a 3rd party patch management product installed the update
A 3rd party tool did what MS told it to do.
Or if you auto approve security updates. As is common. Azure VMs even default to auto-update pulls from MS.

https://imgur.com/a/RvEx3yn

David Attenborough voiced "Sysadmins are cautious by nature" in my head.