The MS employees I've met/interviewed were literally not allowed to read open source code or sample code on Q&A websites. Of course that was mostly 5+ years ago and I don't exactly ask them if their policies have changed.
When at Microsoft I was expected to be on top of Stack Overflow for our product, and there's a whole program where if you contribute to open source you get to vote on where the monthly OSS sponsorship goes.
I've linked to WebKit source before in exec reviews and no one bats an eye. So, changed, I'd say.
Im on StackOverflow all the time and we use OSS code all over the place. Either they were pulling your leg or you badly misunderstood something they said.