Is the Advanced Exchange Program Under Warranty Only?

Only under warranty. That's why they put a $400 hold on your credit card until they receive the dud console back.

I'm under the impression if the console is under warranty (past the retailers return policy) it qualifies for the Advanced Exchange.

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Since the preview program killed my console, support mumbled something about them warranting a console out of warranty..... BUT DON'T QUOTE ME ON THAT! They mumbled... LOL...

See if you can live in Australia, New Zealand or the UK. These governments offer better consumer rights legislation which cannot be minimized by any contract made by Microsoft which is a company, not a government. If you're a citizen of one of these countries,
you are protected by it's laws. Microsoft is not above the law. And if you read Microsoft's terms of use, it states that:

8. APPLICABLE LAW.

• a. United States and Canada. If you acquired the application in the United States or Canada, the laws of the state or province where you live (or, if a business, where your principal place of business is located) govern the interpretation of this
  agreement and applies to claims for breach of it and all other claims (including consumer protection, unfair competition and tort claims) regardless of conflict of laws principles.
• b. Outside the United States and Canada. If you acquired the application in any other country, the laws of that country apply

2 weeks? The total turnaround time has been 8 days at the most when I've had to send in a console for repair & that was just the standard repair.

No offence but if you have to put off paying the bills for something like getting a gaming console repaired you may want to rethink your priorities.

The advanced repair is an option,it's not something you have to do.

My day one Xbox One console had an issue with grinding non Blu-ray specific discs. I had to get the console replaced unfortunately. I was able to get an Advanced Exchange of the console so I was never without a system luckily.

So if you absolutely need to send teh system in for repair/replacement. Ask about the Advanced Exchange option to see if it's available to you. I'll provide more information about the Advanced Exchange Program below.

16. ADDITIONAL TERMS FOR ADVANCE EXCHANGE PROGRAM

In certain countries, Microsoft offers an Advance Exchange Program, under which you can receive a device prior to shipping back your device to Microsoft for service, with certain conditions. If you want to participate in the Advanced Exchange program, Microsoft
will send you a replacement Microsoft Device (the “Advance Exchange Product”) before you send your Microsoft Device to us, under the following conditions:

• Your Microsoft Device must comply with the terms of the warranty, guarantee or extended service contract;
  
• Your Microsoft Device will not qualify for this program if, after we receive it, there is evidence of physical or liquid damage, abuse, etc. or other exclusions from your Microsoft Device’s warranty, guarantee or extended service contract;
• The Advance Exchange Product will be shipped to you in a box that includes a prepaid shipping label; and
  
• You must use the prepaid shipping label to return the Microsoft Device for which you received an Advanced Exchange Product and are requesting Service. You will need to return your original Microsoft Device in the same box within 14 days of receiving the
  replacement Advanced Exchange Product.
• To guarantee that the original Microsoft Device is returned, we will need to take your credit card number. YOUR CREDIT CARD WILL NOT BE CHARGED, provided you return the original Microsoft Device (with the serial number you have provided to us) within 14
  days of receiving the Advanced Exchange Product.
• A nominal fee may appear on your card from Microsoft, verifying that funds are available in your account (the nominal fee will be refunded); this is not a charge. You will be charged the replacement and handling fee equal to the current MSRP of the device
  or accessory, if: (1) we do not receive the original Microsoft Device back within 14 days from the date you took delivery of the replacement device as indicated by the carrier’s tracking system; (2) the device is not under warranty; and/or (3) the device is
  excluded from warranty or service (has physical damage, for example).

If you have any questions, please contact support at
http://support.microsoft.com