When I boot it up I absolutely adore my XSS. I like its design and form factor, and its lightning fast. But the kicker is, I never bought a new or current-gen game for it. I did play Halo:I and FH5 via GP, because they were 'free', but I never bought a new retail release that wasn't a remaster of sorts. Its not capable of doing these things, unless you want to settle with a heavily gimped experience for the same price as the XSX and PS5 version. I get it, since that copy also works on XSX with superior perf.
But anyway, the XSS is a double edged sword. If its their best selling SKU it is because it has always been readily available and its cheaper. This means your userbase gave less fucks about your flagship product. Which means MS has a problem because they are forced to scale back to XSS.
All these potential issues, every one of them, could be easily avoided had MS just put a XSX Digital for 399 on the market. They would likely have at least the same shitty sales, but Baldurs Gate, Wukong etc would be on time, there would be less backlash from developers and less bad press around the hardware.