Oh, Windows 365 is some new PC-as-a-service cloud option, I guess? Is that what you mean? I don't know anything about how that works or whether Zotero would work with it. Possible you'd run into the same problem as when running multiple instances on the same computer.
Upgrade Storage
https://www.zotero.org/support/system_requirements
If you're not seeing it, see Zotero Toolbar Doesn't Appear.