The problem with Xbox is that Larian couldn’t manage to make it work on Series S due to memory constraints. It takes a huge toll on memory if you allow two characters be on two parts of the map at the same time.
Microsoft wants Series S to be a cheaper 1080p option of Series X. Any game Series X can play should Series S also play with lower visual fidelity. This turns out to be a flawed dream by the looks of it.
I don’t think Microsoft will abandon this cheap 1080p console vision just because of one game, but they might need to if more games start to drop Xbox support due to this.