Disc Game won't Play Already Installed Game

The above was explained quite well, but I'll add a little bit extra:

As already mentioned, when you buy a disc game, you still need to keep the disc inserted to play. However, there are some exceptions to this. For example, if you have the disc version, but your friend has the digital version - and your friend is using their
account on your console - they won't need to insert the game disc, because they own the digital rights.

Also, if for example your friend installs their game disc on your console, and then you decide you want that game too and go the digital route, all you need to do is pay for it via Xbox LIVE. The installed game will unlock and you can play that game on your
account without the disc. This could be very useful if your Internet connection is slow as you won't need to download the game from Xbox Live if the game is already installed from the disc.

Technically speaking this already occurs.

When you put the disc in the console it has to install to your hard drive to play, However you do need the disc to play the game to verify you still own the game, This won't ever change because otherwise players could simply buy one disc and share it with
everyone they know, That would be catastrophic for the games developers.

Essentially it is possible but unless the game is a game that can be digitally downloaded for free, i.e games from gamepass or other subscriptions, then you would have to buy the digital version. Once you do that, if you already have the game installed
and updated through a physical disc then you won't have to have the disc in the console to play the game

Hi InitialMeteror,

Installing a game off a disc (either on the Xbox One or 360) simply means that the game files are installed to run off the system's hard drive instead of running directly off the disc (which is required for One games.) The disc acts as a license, and thus
if you try to play the game without the disc you won't be able to play the game.

The problem is the game being on disc and not digital. The disc would need to be used to install and play the game, and since the console at his dad's is all digital it won't work there.