Xbox blue ray/dvd app is not working

yes the Xbox one comes with blue-ray built in. and will play blue-rays and regular dvd's.

you have to check if you have the updates for that

You use the Xbox Insider? Try make the soft reset to try revert and fix the problem

Will try all these again and Thank you all. Will post back soon.

Hmmm. You say the discs are from various vendors? I'd make sure from that statement the disc is genuine and not a pirated copy. Some of those look real but the device knows the difference when you try to play it. It simply will eject, spin and make noise
in the tray or just won't play.

This is simply a suggestion if you had made sure of restarting and resetting the xbox and the app is up to date and have uninstalled and reinstalled the app.