Possible to get DAC support via USB or an certified HDMI 2.1 audio extractor?

I dont think that supports a mic. For that money you are much better off getting a Schiit Hel.

https://www.schiit.com/products/hel

I wonder if an hdmi audio extractor will allow you to pull optical audio out of the hdmi signal to a soundbar or dac? Could be a cheap solution.

I wonder if an hdmi audio extractor will allow you to pull optical audio out of the hdmi signal to a soundbar or dac? Could be a cheap solution.

Yes, that will absolutely work. Something like an audio-extractor, an HDMI switch with separate audio outputs, or digital audio out of a TV or receiver are all potential workarounds to the lack of optical out on the new console. However, it would be nice
if the XBox would support these options natively since not everyone may have a TV with optical out or a receiver, and the only recourse is to buy additional hardware.

Hi Jakobey. My name is Kyle and I'm an independent advisor.

If your TV has an optical port, it's recommended to connect your sound system to your TV instead.

If your TV does not have an optical port, you'll need to use a 3rd party HDMI audio extractor to add an optical output to your Series X. The audio extractor you purchase will need to support HDMI 2.1 to ensure you get the best output from your console. You can find HDMI audio extractors on online stores such as Amazon, it will vary depending on region so I'm unable to recommend a specific extractor.

Please reach back if you have further questions.

Thanks,
Kyle

Only issue here is I've heard that to use USB audio the device has to be certified by MS. So you may not be able to just plug in any USB audio device, DAC, Mic, etc, and have them work. That's my worry.

You cannot use a DAC or USB sound card with Xbox, unless one f them finally started including HDMI. Just use a standard audio receiver. that supports HDMI