Are digital Windows gifts refundable under the right conditions or exchangable?

Hello, how are you? My name is Mateus. I'm an Independent Advisor and I'll be glad to help you today.

First, welcome to the Xbox community.

We appreciate your coming to the Xbox community. As a shipper, you can return the item for a refund. The recipient cannot return or exchange the gift code.

Important: You must request a refund for a non-refundable code within 14 days of purchase. If the code has been redeemed, we will not be able to process a refund, even if it is less than 14 days old.

*You can check this information at the link below.

https://support.xbox.com/en-us/help/subscriptio...

*Thank you in advance for contacting us, I hope this can help you.

Hi, UpdateSonix! thank you for reaching out.
My name is AJ, I'm an Independent Advisor for the Xbox Community.

The only way to exchange your purchase would be to submit a refund for it and then purchase the correct version of this DLC. Unfortunately, a digital gift can't be refunded once the recipient has redeemed its code. This is mentioned in the Microsoft Gift Terms and Conditions (digital goods):

"4- Returns and Refunds. Gifts may be canceled and refunded to the Gift purchaser up to 14 days after the purchase or until redeemed by the Gift recipient, whichever occurs first".

Source: https://www.microsoft.com/en-us/store/b/giftterms
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I hope this helps!
Please let me know if you have any other questions.

That is not how the gift system works. If the recipient already has the game or doesn’t want it
the recipient can give the code to someone else to redeem. Or, they can ask you to
return the item for a refund. The recipient can’t return or exchange the gift code.

Quick warning: You must request a refund for an unredeemed code within 14 days of making the purchase. If the code has been redeemed, we’re unable to process a refund, even if it’s within 14 days of purchase. For more info, see
Microsoft Gift Terms and Conditions (digital goods).

Incorrect,you can get refunds on digital purchases under certain conditions.

Not liking a game a couple of months after release is not one of them though.

When redeemed, the full value of the card or code will be added to your account balance. Further instructions for redemption are provided with the card or code. Additional terms and conditions may also accompany the card or code. Except as required by applicable
law, codes can't be redeemed or exchanged for cash and aren't reloadable. If you live in an EU country where local law provides a "cooling-off period," you may return non-redeemed gift cards for a full refund within 14-days of purchasing the
gift card or code. However, once redeemed, you acknowledge that no refund will be made.

Via MS card
terms and conditions