But then how will anyone troubleshoot if some issue arises. They will have to open up the OS a lot more.
Wouldn’t be a console experience at that point. Will result in plenty of refunds.
the way I think this will work is like this:
out of the box, the system will just be an Xbox. you turn it on, you have a typical console dashboard, just like the Series X now.
from here you can access the Microsoft Store, you can get to your library, your friends list and so on.
then, in the sidebar, maybe somewhere on your profile tab, they will have an option to go into desktop mode, very similar to the Steam Deck (the deck has it in the power options tho)
in desktop mode you have a normal Windows 11 interface, and your controller defaults to moving the Mouse on the right stick, RT being your left click and LT being right click, and a button combo to open an on-screen keyboard.
here you now have to download Steam like you usually do on a PC. open browser, download, double click the installer and so on.
after that you go back into Xbox mode, where the dashboard will detect that you have a third party launcher installed, and asks you if you want to add it to the Dashboard as a new tab.
in this Steam tab (I assume GoG, Epic, EA etc. will work like this too) you see the installed games which you can launch basically like a normal Xbox game.
and there will probably be another menu item there that opens the launcher itself from within the Xbox mode (which will be handled like the system currently handles web browsers and other UWP apps that are mainly designed for Windows).
basically, what I'm saying is... that it will probably work nearly exactly like it does on the Steam Deck, probably with less issues however as Windows generally will give you less issues than Steam OS because all these launchers are native to Windows and all their games also work perfectly on Windows... which isn't the case on Steam OS, where basically all third party launchers need workarounds (Heroic Launcher covers Epic, GoG and Amazon at least).
The Steam Deck will probably be the main inspiration for Microsoft on how to handle this PC/Console fusion, because the Steam Deck basically already is exactly that... it's a Console like system, that also has access to a decently capable PC OS