It's crazy a such a simple script, which is actually the same as 6 years ago, can produce a BSOD in a deterministic way with the latest update of Windows. And nobody at MS seems to care about it.
So at least they should really work hard to not let a BSOD happen in case of excessive nesting of widgets. The repro case is actually the same than the one for a bug which was fixed 6 years ago, and it is straightforward (just nest enough panels in a modal popup, and close it). It's hard to understand how this could not be caught by a non regression test.
45 nested WinForms is bizarre. I think you'd melt a UX designer's eyeballs. It's possible that Microsoft sees this as low impact (small user base), or is too complex to fix, or too high risk to fix.
You could create an interesting payload with this, especially given it can be done via PoSh.
Get payload on machine -> enable Full memory dumps -> execute payload/BSOD -> upon recovery, exfiltrate memory dump.
No doubt excessive nesting is bizarre, although the end user might not notice (nested panels that fit in their parent are not visible). That's not a reason to have your entire OS break :-(