On that reasoning, Windows 2000 must be the latest and greatest version
You jest, but I've had real world conversations within the last year with people who still think XP is about 7 years old.
Had they called it Windows 2001 I think a lot more people would have realised just how long in the tooth it was much earlier, and upgraded to something newer, except they didn't, because the name XP failed to indicate how old it was, and the newer versions failed to indicate how new they were.
It's a different side of the coin, but by not putting the year in there, people seemed to lose track of just how old the version of Windows they were running was, seeing no incentive to upgrade to (Vista)/7/8/10.
Not that Microsoft's clusterfuck of version numbering is something to look up to, 'Windows 10' is really about 5 very different versions of Windows, that was meant to be 'the last ever version of Windows' but now here we are on Windows 11.
Windows Server does use the YYYY naming system however.