Can't use my gift card as a payment method

No, you can't. Microsoft and Google both use different payment methods with regards gift cards so you won't be able to use a Google Play Gift Card to buy anything for Xbox.

You can't buy a gift card with funds in your Microsoft account balance. That would be essentially buying a gift card with a gift card. You would need to buy a game or other content in the store and use your account balance as the payment method.

I have the same issue. I also can't view my payment methods, gift card balance. Hoping this is fixed soon

Currency gift cards can't be refunded once redeemed

They are one-time.use and would.only go back onto.the same payment method which is onetime use

Usually if it's a card payment or PayPal, the amount is taken roughly 10 days prior to release. If it is gift card amounts, it is usually taken straight away. It maybe that you are using 2 methods of payment, that it hasn't used the gift card amount