Thanks for providing feedback on this issue. The work is officially on the backlog now. We’ll update when we have more details to share.
As the last status states, we have been testing for several months. Although many people have asked for this feature, we received a similar amount of feedback from other users that they prefer the Teams notifications and don’t want them changed. We are currently testing a feature for users to choose between Teams notifications & Windows notifications.
We will update you as work progresses.
We are working on a design with more density in mind. Until this design is solidified we are putting this item back to Under Review.