So, does GH actions just let me execute code for free on Microsoft's servers...?

Yes, but also hosting the git repository is a service they’re giving for free.

Not everyone ends up making paid for subscriptions, but yes, they make money that way. Especially organisations that want private repositories, without the hassle of maintaining an instance of a git server themselves.

No need to use the code you run in github actions, they can already read the code hosted in repositories: https://copilot.github.com/

Looking at the /etc/hosts in the runners is also fun: they block dozens of cryptomining-related websites. They do take active actions to limit mining, and ban users caught doing so.

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