3 days ago I hear a weird electrical noise, as I look up I see the lights in the room...

I will follow up with an electrician, will update as needed. Still very sceptical.

The issue I'm having with this advice is once I check the wiring and if nothing is determined to be wrong; Your go to is to "file with my insurance" rather than directing me to the proper channels to get a proper diagnosis on the Xbox itself because everything seems to be blame shifting and side stepping the possibility that anything could be wrong with the Xbox Series X itself; Which has been a theme in all answers pertaining to mine and Ziv's statements. I will remain objective however and follow through with the electrical diagnosis and find out what really happened. Not to say what you're saying could not be true, just dismissive and that I perceive it as being a bit disingenuous to automatically rule out any fault could be in the system itself. Especially if the system was drawing power while off and something structurally inadequate inside the system itself could of caused this.

yes power surges can come from the power company without any weather events. And your Xbox could've taken the brunt of the force, it's really impossible to tell, but the symptoms you're describing are major issues with electricity, short or overloaded circuits.

Like I said you should file a claim with her insurance, and you should have your wiring checked to make sure that everything is OK

Nothing out of the ordinary happened; Other than the Xbox killing itself. No bad weather, strenuous devices, or anything. The Xbox was the only thing making the weird noise, the lights flickering one time happened afterwards, and immediatly before it started smoking. I've only had three things connected to this power strip; The 43" TV, Xbox Series X, and PS5. All were off when this happened. All lights on were LED 3W and there was literally nothing that should have warranted this. I'm a truth over appearances guy, so my feelings come second. Tell me what tests I can run and I'll do that; But baseless assumptions do nothing for me. I will be transparent, honest and vulnerable throughout the process however. After witnessing this first hand, all of those Xbox Series X's "smoking from the top" and being disregarded as "people blowing vape smoke into them" and "power surges" is not only suspicious, but disingenuous. Especially since now, all Microsoft Stores are closed at this very convenient time during these things happening and there's no real offline support.

Your other devices could still.be affected

Surges are finicky

Did you know a surge can also happen over network.cables ?

Its really really a random chance

Maybe your surge protector protected upto a certain joule

If 5000 then 10000 joule hit will punch thru it

You don't know.how much joules hit you so you don't know how far past.the power.bar it got

(Power.bars have joules rating even that's not.a hundred percent ups is the only thing protecting you against a brown outor.surges upto the joules rating but far better then any surge protector)

Hit the first device or 2-3 you don't know until someone look at it. For all you know the fan capacitors not the main power unit of the ps5 could be bad

Only way to tell is a tear down and look at the board and capacitors by a certified tech)

Lightning is unpredictable same like brown outs or power surge