Can I return a digital Xbox gift card?

Return it to the retailer, Xbox LIVE gift cards are only 25 digits long.

If you mean the Xbox One S All Digital Edition, which does not have a disc drive, then you can't use the disc with the console.

Unfortunately, there is no way to convert a game to a digital download. You would have to return the gift to the person that gifted it, and ask them if they could exchange it in the store for a currency gift card. The gift card can then be redeemed by you
on your account, and you can buy the game for you then.

Or your friend could return the game, and buy the game digitally as a gift for you on the Xbox marketplace.

Depending on the store's return policy, it might not be possible to return a physical game. So if that's the case, your only option would be to sell the game through ebay or something similar, and buy the game digitally from that money (however, you might
lose money through that trade).

Hi, why not just purchase a $5 code, less hassle.

As for refunding you would have a hard time as pretty much every store will not refund digital codes.

I don't think it's possible.

I was specifically told by xbox support to post it here and Rockstar would be in contact with me.

And on my receipt it specifically says:

Special note for digital gift card customers: You can cancel your gift card order and receive a refund up to 14 days after your digital gift card has been sent or until your gift card has been redeemed, whichever occurs first.