Is there a way to group all the Windows and Xbox folders in one single folder?

Please try to change the folder permission on your D drive:

Press Windows + E to launch the File Explorer.

Navigate to the drive where you want to install the apps (in your case, it’s the D: drive, right?).

Locate the WindowsApps folder. If you cannot find one, create a new folder by the same name.

Right-click on WindowsApps folder and select Properties from the context menu. Alternatively, you can select the folder and hit Alt + Enter to launch the Properties window.

Navigate to the Security tab and select Advanced.

Click on Continue in the Permissions tab of the Advanced Security Settings window.

Select Change to modify the permissions and grant access to the folder.

Click Advanced in the Select User or Group window.

Click on Find Now.

Select your user account from the list at the botton and click on OK.

Click OK in the Select User or Group window.

Click on Apply to save the changes.

Select OK in the Windows Security prompt that appears.

Finally, click OK to close the window.

After making the changes, restart the computer and check if you can now save the games to the selected drive. Make sure the drive has enough free space for the game and that the WindowsApp folder is created on the drive. It is always best to install Xbox Games on the WindowsApp folder.

resetting windows or re installing renders all xbox app games inoperable as the folder is encrypted to that one install of windows.

you have to re download all the xbox app games again.

go setting, storage, location and change it to that drive this should then state there is a folder there and it will be removed.

if not google remove windows app folder from drive as you have to take ownership to remove it.

It sounds like the issue you're experiencing may be related to the permissions set on the XboxGames folder. In order to ensure that the game installs to the correct folder, you may need to adjust the folder permissions to allow the Xbox PC App to write to that folder.

To do this, you can try the following steps:

1. Right-click on the XboxGames folder and select "Properties."
   
2. Click on the "Security" tab.
   
3. Click on "Edit" to change the permissions.
   
4. Click on "Add" to add a new user or group.
   
5. Enter "ALL APPLICATION PACKAGES" in the object name field and click "Check Names" to confirm it is a valid entry.
   
6. Click "OK" to add the user or group.
   
7. Select the new user or group from the list and give it "Full Control" permissions.
   
8. Click "OK" to save the changes.
   

Once you've made these changes, try reinstalling the game and see if it installs to the correct folder. If this doesn't resolve the issue, you may need to contact Xbox support again or seek further assistance from a Windows or IT professional.

I can advise you something, but I can't guarantee if it's going to work.
This is:
If your drive has these folders (WpSystem, XboxGames, WindowsApps)
(Enable hidden files) and this archive .gamingroot

Try delete each one. Probably you need to take ownership for that folders. Do it in this way:

Press Windows + E and go to the drive where game is installed.
Right click on each folder and select properties > Go to the Security tab and select Advanced:
Click on Continue in the Permissions tab > Select Change > Click Advanced in the Select User or Group window, then Find now:
Select your user account and click on Ok > Click on Ok and Apply on every window and close them.

You can delete the folders now, restart your PC and give it a new try

it won't, microsoft chose the route of encrypted folders tied to one installation of windows, you will need to redownload all the gamepass and windows store games again. There is no way around this.