Here's a second draft. I took feedback here and also from the QA meeting [1]. The split between the milestones makes this harder to read and compare. If you have better ideas on how to do it, please tell me :-)

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== Basic milestone ==
For each release-blocking desktop, the desktop environment must perform regular operations like windows close/resize/maximize/minimize/fullscreen (when supported/applicable), windows switching, and similar common operations as expected. Common application content such as regular application windows, video output, and games must be displayed correctly. In this milestone, only pre-installed applications are considered.

Footnote - "What does this cover?":
The goal of this criterion is to ensure general desktop-related functionality for different types of applications. A small number of non-working applications (caused by applications themselves or the desktop environment) is not a violation of this criterion.

== Final milestone ==
For each release-blocking desktop, the desktop environment must perform regular operations like windows close/resize/maximize/minimize/fullscreen (when supported/applicable), windows switching, using windows on virtual workspaces, and similar common operations as expected. Common application content such as regular application windows, video output, and games must be displayed correctly.

Footnote - "What does this cover?":
The goal of this criterion is to ensure general desktop-related functionality for different types of applications. A small number of non-working applications (caused by applications themselves or the desktop environment) is not a violation of this criterion. An example of a violation would be e.g. if a significant number of QT applications couldn't be resized (but they should be), or if all Java applications failed to display any content.

Footnote - "Difference from the Basic criterion?":
Compared to the similar [Basic criterion](link), this covers all applications (including third-party ones), not just pre-installed ones. More window operations are required to work, e.g. the explicitly-stated virtual workspaces workflows.
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[1] https://meetbot.fedoraproject.org/fedora-meeting/2023-03-20/fedora-qa.2023-03-20-15.00.log.html