Can't install or update any game - error 0x80070005 (folder permission/account switch bug)

So, I have this problem for the last 6 months or so, but finally I was somewhat able to track down what causes it. I had 2 separate problems on my Windows 10 machine:

1 - My disk would generate dozens of GB of logs everyday in the c:/windows/temp folder, which made I always have no free space on the disk and causing all sorts of bugs with applications. Obviously the info on these logs was obscured, so I couldn't discover what generated them. This was all the info I had:

Fault bucket , type 0

Event Name: AppxDeploymentFailureBlue

Response: Not available

Cab Id: 0

Problem signature:

P1: 80070005

P2: 22

P3: 3

P4: windows.stateExtension

P5: 10.0.19041.1348

P6: 5252

P7:

P8:

P9:

P10:

2 - Often my Xbox app would not update or install games. Whenever I tried I would get the following error:

Something unexpected happened.

Reporting this problem will help us understand it better. You can wait a bit and try again or restart your device. That may help

Error code: 0x80070005

Another cryptic error message with no info that would help me solve the issue. Obviously restarting the device or waiting didn't fix anything, so I took matter into my own hands.
After trying all available fixes on the internet (lots of people had similar problems, but not this one) I eventually gave up and did a fresh windows install that doesn't delete the disk and, much to my surprise, that didn't fix the issue either.

After a couple of months trying I gave up, unsubscribed from Game Pass and made a shell script to delete everything from the c:\windows\temp folder every 5 minutes, so that my disk won't be full and will stop bugging other problems. My disk is an SSD and, as we know, they tend to have low endurance. This constant write/delete is very bad for its health and that was killing the SSD.

Recently I decided to try again to fix the Xbox app and tracked down the issue to the F:\WindowsApps folder, the folder that games gets stored. For some reason it wasn't able to write/read from there properly and this made my games uninstallable/unupdateable/unplayable. After trying to fix the permissions I eventually gave up, entered security mode, deleted the folder (actually renamed it) and restart the PC. When I opened Xbox app again I had to set this disk as being used again, restart the PC and suddenly it was working again, like a charm. All I had to do was to redownload all games I wanted and problem solved.

This is until I discovered what caused the problem to begin: I have two accounts on this PC. My main user account and the account I use for Xbox game pass. Sometimes the Windows Store/Xbox app uses my main user account as default to login and this behavior was causing the bugs in the WindowsApps folder, which was causing the huge amount of useless logs, which was bugging basically every prorgam on my PC.

So as I stand now I probably will have to delete my WindowsApp folder AGAIN if I don't want 100s of GBs of error logs per day (if I recall correctly Microsoft Store keeps trying to update stuff on background even when every app is closed, so I don't see any way of stopping it)

This obviously need to be fixed, as I'm paying for a service that I can't use AND thats nuking my computer (which I also use to work, by the way).

Do you have any hotfixes for this issue?

:)