I can't play my games even though I own them all?!?

It's part of a current service alert. You'll want to keep an eye on https://xbox.com/status for any updates.

I would also try to factory reset but wipe everything including the games, its a pain that you'll have to install them again but it might fix it, or before wiping everything try doing an offline update incase the last update you had went wonky.

https://beta.support.xbox.com/help/hardware-network/console/system-update-solution/offline-system-update

other than that I cant think of another reason it wont play your disk games

I know its frustrating but I hope it helps

To request a refund for your games, you will have to go here
xbox.com/refund. As for the refund for the console. You will have to contact the retailer you got it from, and see what they can do.

Hello, I’m Arturo.
I’ll be glad to assist with your concern today.

For this purpose, I would like to ask if you can see the game with the “completed” status when you check your Microsoft account order history

https://account.microsoft.com/billing/orders

You can check past purchases by changing the filter from “3 months” to “all available”

Additionally, in case you have other accounts, please review the order history with each one.

My mistake! I think I had confused this worms game for worms revolution which I had bought in 2014 according to that link. I must have been playing Worms WMD from Xbox game pass at some point. Thank you for your help anyway!