How do I customize the home screen with the July 2023 update?

I've been using the 'Report a Problem' feature on the console at least once a week to report this, and request that Home Screen customisation tools are given back to us. No sign that they're listening at all, of course - but please, everyone; keep providing them with this feedback, regularly.
We're certainly not going to get change if we don't ask for it, and the more voices asking, the better shot we've got.

I called and I got human to discuss this with. The only solution is to report a problem. In order to do that I have instructions, the more that report it the more likely they will fix it.

To report a problem:

Put your screen on the stuff you wanna remove and hold the Xbox button, this will create a screen shot of what you were on before holding the button

At the bottom of the “shut off console” screen there is a report a problem button, if not go to the store and search “report a problem” and install the app.

Report a new problem, then other for the category and other for the subcategory. Then you’ll see your screen shot and hit next. And chose to continue on another device (like your phone so it’s easier to type) or continue on the console.

Then fill out the title and next you’ll get a big box to describe the problem. Here’s your chance to tell Xbox what you want. Keep it clean or it will probably never be taken seriously.

Then we just have to hope they listen. Good luck. Hope this helps in the long run.

I wish you could customise this dashboard but apparently shoving ads and useless feeds down our throats is more important. I just cancelled my Gamepass renewal because I've been playing a lot more PC games from Steam because no ads on my dashboard and I don't have to pay for multiplayer.

The new dashboard ads replacing all but 2 groups is simply obnoxious on Microsoft's part. Especially without an option to make it how it was previously.

I once saw a feed that was titled something on the lines of "Books that became games". Like I care. What an absolute joke.

Here is a thought (for a possible solution to this issue):

A sixth short-cut could be added to the existing five at the top of new Xbox Home Screen, to allow us to quickly access our own Home Screen display area.

Ideally, we’d like to just have the freedom to (almost) fully customise our entire Home Screen returned to us. Give us Home Screen customisation options that we had prior to the recent Dashboard UI downgrade (e.g., to be able to re-order and/or remove unwanted/unwelcome features and promotions, and to just display our own carefully curated Groups of apps and games, as we choose to display them).

These are our Xbox Consoles; these *should* be our Home Screens.
(Just like the guy says on that 'Xbox On' video on YouTube from a couple of weeks ago... right after some blatant misinformation about how Xbox isn't "just steamrolling all over your personal preferences" - see from around 1m50s, in the 'NEW Xbox Dashboard UI - Your Guide To Everything New' video.
And, of course, folks - comment there as you feel is appropriate).

Right now, it feels like our Home Screen has been taken away from us.

Digital Game Collectors are still collectors.
Collectors want to display and interact with their collections.
We always have.

We are digital game collectors in large part because that is what Xbox wanted us to be. We have played along with what they wanted for years - maybe Xbox could actually play along with what we’re wanting, now?

The new Xbox Home Screen has removed several customisation options that were ideal for digital game collectors.
We could previously curate maybe 15 or 20 Groups of our games, arranging our game-tiles as we wished to display them, clean off any irrelevant/unwelcome mess from the lower part of our Home Screen, and then arrange our curated Groups for display in that lower section of our Home Screen.
We used to just boot up to the Xbox Home Screen, and then simply scroll down, straight into the heart of our own carefully curated library of Xbox digital games; game tiles arranged together as we wanted to see them, in a dozen or fifteen carefully crafted Groups. (This was far less cumbersome than having to dig into menus and sub-menus.)

The beauty of being able to have your game library personally curated into 15-20 Groups arranged on your Home Screen is that you can actually enjoy it as a collection.
You can personalise your collection, arranging and displaying it across your whole screen as you wish.
Without the tools to display a game collection (which have recently been removed from the Xbox Dashboard), this fun part of the Xbox gaming hobby is ruined.
So, we'd just love to have the ability to fully clean up and customise our Home Screen returned to us.

If, however, Xbox is truly adamant that the updated (abysmal and unwelcome) lower section of the Home Screen must remain in the (appalling) state that the recent update has inflicted upon Xbox gamers, then how about that alternative feature request I mentioned initially:
They could just add another shortcut at the top of the new Home Screen.
This new shortcut could take Xbox gamers directly to their own separate Home Screen area; call it something like ‘My Wall’, 'My Display', or 'My Collection', or something (I guess 'My Space' would not be quite right). ;-)
They could just provide us with a blank canvas there, to fill the whole with our own Groups of games, apps, Xbox friends, etc., as we wish. Maybe even add additional customisation controls, to user-select how many game-tiles across are displayed in this space, so that tiles don't get too small to be easily visible/legible?
But, if not that, just give us the full screen-width for displaying app/game-tiles, seven or eight tiles across.
Allow for 25, 30, 50 Groups to be displayed, organised, and interacted with there.

That’s not quite as convenient as just scrolling down straight into our game library display like we used to do, but it’s much better than what we have now (having to click into menus and sub-menus, and having no way to arrange game-tiles to display consistently as we wish to view and interact with them - some Groups views show four tiles across; some show 5 across, but with a side-bar menu. It's just not as good as having the whole screen to display your Groups on, so let's go back to having something better available for gamers who want to use it).

With this solution, the Xbox Marketing team will still get to inflict the diarrhetic spillover from the Xbox Store all across the lower section of our Xbox Home Screens, as they apparently so vehemently desire to do.

But also; we long-term, loyal Xbox gamers would get back the freedom that we previously enjoyed - being able to arrange, display, manage and launch games from our Xbox Digital Game Libraries as we wish to.

By adding this improvement to the Xbox Home Screen, Xbox Marketing would be able to maintain the Xbox Home Screen in the new (IMO significantly downgraded) state, but also could perhaps appease all of us Xbox gamers who really dislike it intensely (or, at least, really dislike that the new Home Screen has taken away important customisation and display tools from us).

TL;DR - If we aren't going to ever be able to fully customise our Xbox Home Screen anymore, Xbox could now instead add a sixth short-cut at the top of the new Xbox Home Screen.
This proposed new Home Screen shortcut would take us directly to a 'blank canvas' Home Screen area which we can fully customise as we like, free from any marketing/promotional material.
Just a space where Xbox game collectors can display, interact with, and enjoy their digital game libraries, as they like. (Those libraries that Xbox has long encouraged loyal, long-term Xbox fans to build up over many profitable years.)

Everyone can actually win here, if Xbox really wants to be in this for the gamers - so, Xbox; how about it?

Since you mentioned that you are still on Xbox one... This new update eventually killed mine. It started off with my console completely resetting every time I turned it off. (No stand-by) Then it took longer each time I turned it on (Green Xbox one loading screen) until one day it just gave up and completely died. I argued with customer service for a while, because I did nothing to cause the damage, their update caused the damage. Their reply was "you can choose to install updates so it is your fault that the update is not compatible with your system." To which I replied, no one asked me to choose... I have the settings for updates set to the default which updates are installed automatically. After that they just jerked me around until I gave up.

Long story short... That update will kill Xbox one consoles. Those greedy ***holes not only want to clutter your home screen with stuff you don't want, but they will also kill consoles that they don't want to support so you buy a new one.

I just got the update on my xb1s today and was instantly wondering the same thing. It's much more cluttered, and it's mostly ad stuff that used to be in the store and/or game pass tab (I counted 12 rows of this stuff which I couldn't care less about). And on top of that it's less customizable, the stuff that I used most often (every single day) is no longer on the home screen and I'm no longer able to add it. Because of this, it's become tedious to get to clubs, Microsoft rewards, etc.. I used to say without a pause that I liked the xbox ui much more than the competition... I can no longer do that. The only positive that I've noticed so far is that I can see the background picture better than before the update, but that's an awful trade off when comparing it to all the negatives.