I think it was even showed off during presentation it looked like a windows taskbar and windows icon during part. It also had the task view button looking at it. 1:07 during the "ROG Xbox Ally World Premier Reveal Trailer | Xbox Games showcase" video that was 1:41 in length. Other than the lack of clock it looked like some custom explorer implementation.
Yes! I have long thought the xbox should have a desktop mode. Even if it isn't a full Windows system, just a browser, file manager, photo/video viewer, and office apps would be all most people need. I imagine such a device would be very popular among students who both want a console and need a computer.
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