Microsoft has fixed this Xbox Series X issue with an update – Times of India

Most companies use Digital Rights Management (DRM) to protect the copyrights for their digital media by using technology that restricts the copying and selling of copyrighted works and software. This prevents users from burning games to CDs for sharing and selling purposes and is also used by gaming companies (including Microsoft) to authenticate game purchases.
Earlier, one of the major problems with Xbox Series X consoles was Microsoft’s online DRM that didn’t allow players to access purchased games after an outage or other issues. Users also complained that Xbox One disc games along with titles that don’t require an internet connection were also inaccessible while offline. Microsoft has now fixed this issue with a recent update that won’t force players to do an internet check or download from an Xbox One disc.

Corroborating an Xbox user’s offline gaming experience, engineering lead Eden Marie has confirmed that users have recently started noticing the new change which was already included with the 2206 update that was released earlier this summer. Marie also that the company has examined data since the launch of the Series X|S consoles and has decided that an online compatibility check isn’t necessary “in the vast majority of cases for Xbox One discs.” However, some titles might still have to be updated online after installation to “ensure the best experience,” she added.

What was causing the issue
This Xbox series X console issue was related to Microsoft’s Smart Delivery system which didn’t allow users to install a game directly from the disc when they inserted different types of (Xbox One/Xbox Series X) game discs on a new console. Instead, the new console used to install an updated version of the game from the internet even when Series X consoles were fully capable of running most Xbox One titles directly from the disc.
This means that users can now play multiple offline games that are either branded for Xbox One or Xbox Series X. Still, the new consoles won’t allow users to play original Xbox or Xbox 360 games without updates.

Offline gaming on Xbox: Exceptions
Xbox series X consoles require users to create and log in to an account to access the games. So users have to connect to the internet at least once while setting up the console. Apart from this, there are some games (known as “stubs”) like Forza Horizon 5 or Halo Infinite that don’t include the full version of the game. So users will also need to be online to download the latest versions of games, expansion packs and more.