Pattern of black squares on my kinect setup screen and games are pixelated

on console looks x1 a square with a curve on the front at the bottom of the console followed by a black and dark grey pattern. Ps4 looks similar as far as the black and grey pattern follows but it looks like a skinny eraser with a curve at the bottom

If you mean pixels then it could be an issue with the HDMI cable or the HDMI port on either your tv or console.

Are the squares there when just on the home screen?

There's no such thing as Panorama Screens. We used Panorama Aspect Ratios to encode DVDs because we couldn't encode 480/576 using square pixels as the resulting resolution volatile both DVD and broadcasting standards (1024 x 576 / 853 x 480). So we compressed
the image horizontally (1024/853 into 720). We sacrificed horizontal resolution to maintain vertical resolution. When you playback the DVD on a wide-screen, it is stretched to fill the screen. We no longer have this problem so there's no need for us to use
non-square pixels. Now lets close this subject.

First gaming system I had was one which had Pong, Squash, Table Tennis, and a couple of other modes which had to do with a pixelated square running across the screen. And you are correct on the age factor, you got me by about 20 years.

I have a tiny black pixel on my screen but I know that's the TV itself. The most irritating thing to look at when gaming because I always focus on the black dot at the worst time lol. Hopefully you get your problem sorted