Newer systems internet requirement

Yes they do either by wireless or by ethernet cable, its so the system is set to instant on it will update automatically.

Hi, if the desired drive is not formatted as NTFS please format it
I ask this because most of the newer pc xbox app games requires this file system in order to be installed on another drive

Yolu need too be connected too the internet

*System Requirements: Microsoft Films & TV requires a broadband internet connection and a Microsoft account.

https://www.microsoft.com/en-gb/movies-and-tv

You can even do a quick google search along the lines of "ps4 set up no internet" that will bring you to multiple sites letting you know that internet is not required for the initial set up.

You're correct. I don't believe my PS4 had a mandatory update, or my upgrade to the PS4 Pro. There's no technical reason why the Xbox One can't be made to 'just work' from power on. I'm not going to argue to the toss here, this clearly isn't very good
position for users who are lacking either a decent Internet connection, or indeed a connection at all.

I'm pretty sure the Switch doesn't need a mandatory update either. During set-up you are asked to connect to WiFi, but this can be skipped. I know, I have one of these too.

There is a question of whether this is due to anti-piracy, or the echo system MS originally sent up for the Xbox One. Which requires, for some undetermined reason, a new machine to be online and registered their end, even if it's only during the initial
set-up. You even need a Microsoft account just sign in, even if you have no intention of using it online. This isn't a requirement on PlayStation consoles.

Being new to the Xbox system, you may or may not remember that when Microsoft first announced the Xbox One, it was originally planned to be always online, there was even speculation that you wouldn't even be able to trade-in disc Xbox games. Microsoft made
a u-turn on this at launch, but the mandatory update and a Microsoft account remains unfortunately.

After the initial setup you can take the console offline and continue to play your disc games without a connection if you prefer. It is the initial setup that requires the connection.