I have xbox series s and pc with following specs ( which is more suitable for gaming(

Hi X, this is Manuela!. I'm an Independent Advisor and community user like you

Looking the PC processor generation that you have in your computer I personally would prefer the Xbox Series S
For example with a Series S you don't need to worry about tweaking game settings to see if an specific game runs. With that processor you can experience some performance issues with the most recent games and future games

Also if you prefer mouse and keyboard a lot of games supports this configuration.
The most important thing for me is that you can carry more easily with the Series S in case you want to travel

If most of your games are on disc then the Series S (which does not have an optical drive) isn't for you. If purchased this console, you'd need to buy the digital versions of your games again.

Also be aware that the Series S is more of an entry level console, and while it has better specs and performance then the Xbox One and One S, it lacks storage space. You're better off with the Series X.

Basically the rundown is:

Xbox Series X:

Has a spot for discs

Has better graphics

More Expensive

Xbox Series S:

Entirely Digital (No spot for a disk)

Not as great graphics but still good

Less Expensive

So it's honestly up to you whether or not you want to get the better of the consoles, though the Xbox Series S would work for everything you would want it to.

If you still aren't sure you can look at this article I found explaining it more in-depth: https://www.techradar.com/news/xbox-series-x-vs-xbox-series-s-which-xbox-will-be-right-for-you

I wouldn't consider the Series S as the lesser of the two,

These consoles are much more like PC's in term's of spec and performance than previous generation consoles, and as with PC gaming, you get / buy or build a system to what resolution and refresh rate of what your TV / Monitor is being used,

"as an example",

"Your not going to buy an RTX 3090 for your PC at £/$1,500 just for the card, that's capable of gaming at 8K to only use it on a 1080p TV / Monitor, that's a huge waste of money."

The same can be said of these new consoles,

The Series S is designed and aimed at 1080p/1440p gaming as to why the spec's of the Series S aren't as high as the Series X, because if your not planning on gaming at 4K, you don't need all that extra power that the Series X offers as that is designed and
aimed at 4K gaming.

I have a 4K TV and a 4K Gaming Monitor so for me, I'm get the Series X,

However, If I was to only have a 1080p TV / Monitor and no plan's of upgrading to 4K, I would've been getting the Series S instead.

Basically the rundown is:

Xbox Series X:

Has a spot for discs

Has better graphics

More Expensive

Xbox Series S:

Entirely Digital (No spot for a disk)

Not as great graphics but still good

Less Expensive

So it's honestly up to you whether or not you want to get the better of the consoles, though the Xbox Series S would work for everything you would want it to.

If you still aren't sure you can look at this article I found explaining it more in-depth: https://www.techradar.com/news/xbox-series-x-vs-xbox-series-s-which-xbox-will-be-right-for-you

I wouldn't consider the Series S as the lesser of the two,

These consoles are much more like PC's in term's of spec and performance than previous generation consoles, and as with PC gaming, you get / buy or build a system to what resolution and refresh rate of what your TV / Monitor is being used,

"as an example",

"Your not going to buy an RTX 3090 for your PC at £/$1,500 just for the card, that's capable of gaming at 8K to only use it on a 1080p TV / Monitor, that's a huge waste of money."

The same can be said of these new consoles,

The Series S is designed and aimed at 1080p/1440p gaming as to why the spec's of the Series S aren't as high as the Series X, because if your not planning on gaming at 4K, you don't need all that extra power that the Series X offers as that is designed and
aimed at 4K gaming.

I have a 4K TV and a 4K Gaming Monitor so for me, I'm get the Series X,

However, If I was to only have a 1080p TV / Monitor and no plan's of upgrading to 4K, I would've been getting the Series S instead.

Xbox Series S it is. I just hope my Roxio Gamecap HD Pro would record it since it only connects with HDMI cable.

To answer your question, you can stream any game in your library. However, as other's have already stated, this is purely a video feed from the console to your PC. None of your PC hardware will be used. Cyberpunk runs pretty bad on Xbox One hardware and it won't play any better by streaming it.

If Cyberpunk is the game you want to play then you'll ideally need a Series X or a Series S console. The Series S version has recently been given a 60fps patch. If you want to play it on a PC, you'll need a suitable gaming PC.