I can use it in the store and search, but I can't use Japanese character input in the game

The strange thing is I can find the game under the Japaense Xbox.com page. But not on Smart Glass app. The smart glass app is weird. It shows half the content in English and for the US region. Then if I go to the store or achievement, everything is Japanese.
It seems to be the "true" Japanese store. The games for gold free games and sales are simalr but not all the same. For example the brand new Need for Speed is on sale, which I am don't it is in the US region. I also can not find the game listed at all when
searching. Either in Japanese or English. It just seems to not exists in the Japan market. But then why does it show up on the Japanese Xbox.com page and why is that page different from the one smart glass is showing me.

Have you restarted your console?

Maybe signing out then back in.

It is a bit weird to be fair as its still on my game pass list.

Let me know how you get on.

Hello Michael, my name is Jose, I hope I can help you in any way I can.

Microsoft may still be reviewing your Xbox account. The review process may take several days, even weeks, to complete.

If your account does not have active suspensions, the review is likely due to Microsoft investigating the inappropriate language incident. The company may be gathering more information about the incident, such as the context in which the inappropriate language occurred, or it may be reviewing your account history to see if there have been other similar incidents.

Once the review is complete, Microsoft will notify you of the results. If the review determines that there is insufficient evidence to justify a further suspension, your account will be returned to its normal status.

In the meantime, you can continue playing solo games and participating in activities that don't require using groups or searching the Microsoft Store.

Hope this information is helpful.

The Japanese xbox 360 games are region locked to work only with NTSC J. The answer would be no, you can't use a japanese xbox game to work with NTSC US region consoles.

I assume that it is only Microsoft Live who are able to ban accounts and consoles, right ?

To play the game we need japanese ip, if not we can't log at all.

Once we have japanese ip, we can play (it is a Pay2Play game - players paid like japanese people).

I (hopefully) never read somewhere that the game'server/editor ban someone by using a japanese ip

(even if it is from a proxy adress).

Only ban was about cheating, spamming, really bad beaviour.