When playing a game on Steam, I appear online on Xbox to other people. How does that occur...

If you have the Xbox app installed on your PC, that's most likely the cause. Try signing out from it, or setting it to appear offline

Open up the Xbox app on your phone, pc, or console and switch to “appear offline”

this should resolve the issue

The issue occurs while running the game via Steam or Xbox Live. Only Halo Infinite is affected by this. This does not occur on any other game.

Thank you for time for responding and trying to help!

"If I may ask, does the game freeze also occur to your other games or just specifically to your Call of Duty MW2?"

-, No i don't have any trouble or freezes with other games this the first time happening with this game Call of Duty world war 2.

"Also does the error occur when you're playing the game offline, online or both?"

-, I haven't tried the game online yet, i bought the game mainly for the single-player campaign, but I will test it out if it freezes in the online section too, the freezes occur from the start when the in-game cutscenes begin and still occurs when you can play the game.

Does your friend appear offline? The appear offline feature will still increase in day count if they play while appearing offline. If he is not appearing offline, sometimes (very seldom) will the friends list show people with a wrong status, but when
it does it usually updates within a few hours when this issue occurs.