Suddenly unable to install any games from the Xbox app & Microsoft Store

I've spent so much time on this issue for the past few days. I am unable to install games on my PC via the xbox app & the microsoft store.

Microsoft store install button does nothing. I have uninstalled/reinstalled microsoft store through powershell with no change

I can't change the install location from the xbox app. I have followed all the instructions, and it seems I'm missing the change folder bar that is usually beneath the drive bar. It is currently set to install on C: drive.

When I try to install a game, it asks me where I want to install it. Even with the ask every time option unchecked in settings, it asks which folder I want to install to on the C: drive. it then proceeds to tell me every single folder i have tried can't be used.

I tried a clean reboot of windows, and all that did was remove the games i already had previously installed (with no issue!) and solved nothing.

I'm kind of at a loss. I'll answer a few questions I have received -

I've tried clearing the cache and running different commands that were recommended in a chat with an expert. we spent hours trying to isolate any issue.

I only have one ssd drive. it is not partitioned. There are no external drives connected, and no other internal drives.

I only have 1 account and there are no other users of this computer - the account is the same for xbox app and microsoft store app.

I'm running Windows 11, everything is up to date per the Windows Update page. Also all apps up to date, all drivers seem to be current.

The PC has been fully reset. I have also tried installing from a USB drive. same install issues with xbox games. I do not have this issue for any other download/install in the microsoft store - I can install fine except for xbox games.

Someone please PLEASE tell me you have the same issue and/or you have a fix. I feel like I'm in the twilight zone

:)