Grammaretto
Not to do with heat so why microwave? It's the moisture surely.
I've already said I don't own a food processor and even if I did I wouldn't put a rock hard 500gm bag of icing sugar in it unless I wanted to break it.
Well I don't actually think you would break it as that is the suggestion given when you Google hence so many gransnetter telling you to do it.
To soften hard sugar, use a microwave with a damp paper towel for quick results (about 30 seconds on medium), or try the bread/apple slice trick in a sealed container overnight for a gentler method, or even use a low oven for granulated sugar; the key is adding moisture or gentle heat to break up the clumps.