Can I claim usernames of Inactive users with no progression?

A Microsoft account and Xbox account are essentially the same thing these days so it's kind of the same thing.

Hi,

Also refer to the Xbox gamertag FAQ where it says under the question ‘Does the suffix always appear next to my gamertag?’:

If you’re assigned a suffix, the # symbol and suffix appear everywhere except in friends lists. You don’t see suffixes of friends in your friends list and they don’t see yours in their friends list. Your suffix may also appear in games that support the modern gamertag system so that everybody knows who’s who.

Hope this helps.

Are the 5 years of not signing in to xbox and 2 years of nit signing in to Microsoft related or separated? Also what happens if the account is signed in but has no activity for 5 or 2 years?

In areas that have been updated to use it, it'll show up as gamertag#1234 (the #1234 will be a little greyed, it's similar to Discord). In areas where it's not supported, in a lot of games, it'll show as gamertag1234.

There's no way to request a gamertag be freed up and no way to know for sure how active an account is. The tag system is in use on other Microsoft services, so even if they're not active on Xbox, they may be in use elsewhere. If a person doesn't sign into their Xbox account within 5 years, the tag will be freed up. If a person doesn't sign into their Microsoft account within 2 years, the account will be closed which should also free up the tag. So all you can do is wait, or go ahead and take the tag, but you'll be given a suffix.

The "quitting early" report relates to game play and would not have any affect on their gamertag.