Why isn't UTF-8 allowed as the "ANSI" code page?

The "ANSI" codepage is basically legacy: Windows 9X era. All modern software should be Unicode (that is, UTF-16) based anyway.

Basically, when the Ansi code page stuff was originally designed, UTF-8 wasn't even invented and so support for multi-byte encodings was rather haphazard (i.e. most Ansi code pages are single byte, with the exception of some East Asian code pages which are one-or-two byte). Adding support for "proper" multi-byte encodings was probably deemed not worth the effort when all new development should be done in UTF-16 anyway.

_setmbcp() is a VC++ RTL function, not a Win32 API function. It only affects how the RTL interprets strings. It has no effect whatsoever on Win32 API A functions. When they call their W counterparts internally, the A functions always use MultiByteToWideChar() and WideCharToMultiByte() specifying codepage 0 (CP_ACP) to use the system default Ansi codepage for the conversions.

Michael Kaplan, an internationalization expert from Microsoft, tried to answer this on his blog.

Basically his explanation is that even though the "ANSI" versions of Windows API functions are meant to handle different code pages, historically there was an implicit expectation that character encodings would require at most two bytes per code point. UTF-8 doesn't meet that expectation, and changing all of those functions now would require a massive amount of testing.