I think this is taken somewhat out of context (or simply poor wording on the part of the author of this section of the report). They're not saying that CoD couldn't be ported to Switch, they're just saying that Switch wouldn't be able to run a version which is comparable to the PS5/XBSX versions, which should hardly be a surprise. Here's another quote where they acknowledge games like Doom Eternal and Apex Legends:
As to why there's such a focus on CoD running on the current Switch, when MS's agreement seems to just refer to Nintendo hardware in general, it's because Microsoft claimed that the agreements they signed, such as the Nintendo one, will extend the market of CoD games to an additional 150 million players. Over 80% of this (120+ million) is from counting the Switch install base, so if Microsoft don't plan on releasing any CoD games for the current Switch, they can't realistically claim to be expanding the market by 150 million.
Anyway, I'm more interested in over-analysing all those juicy [redacted] parts of the report which probably aren't references to Nintendo's next hardware but are fun to speculate on. Here are a few fun ones:
Personally I think [✄], but maybe [✄]. Also, [✄]. [✄].
Edit: Bonus content. Here's a quote from
Microsoft's response to the provisional findings. It's a bullet point in section 4.6 relating to the contract with Nintendo: