What level is Principle SE at Microsoft? Trying to understand how good of a position is that for a seasoned SE with lots of accolades and team leading experience. What TC should be expected?
Lvl 65 is principle. It's expected to have broad leadership experience, and have a track record of leading multiple teams and crossing organizational boundaries. Can be kind of hard to get in as an external candidate. I had heaps of experience leading whole companies technical direction and all the teams I interviewed with loved me but offered 64 instead. Might also heavily depend on the org you interview for.
You misread OP. They are looking for a position with principle. Any company would value such an individual.