Xbox Console Streaming Doesn't Work and Is Not Real?

Well more options is never a bad thing.

For example, If someone else is using the TV and you wanted to play xbox then streaming to your phone is a pretty useful feature. Your cloud saves are all shared so you can play your games without being anywhere near your xbox and pick up where you left
off when you do decided to play on the xbox itself.

If you are having issues with the service that is one thing. To think its not useful or is somehow a scam is hard to get behind though

Just because it's not for you, doesn't mean it's not for someone else. More options allow more people to play the way they want to play. I've tested it, and it's been working great. I have very good internet at my house without data caps, which is not
the norm in America, but I've been very impressed technically.

Bluetooth is a wireless connectivity technology. You can read more about it here. It's letting you know that you'd need a controller connected to your phone to use the
service, as the console responds to controller input. Modern Xbox One controllers have bluetooth built in to connect to phones, computers, and tablets.

This shows that your internet connection would be a blocker and not provide a reliable connection.

I would find it useful when I'm traveling for work and instead of watching a terrible movie on the TV, I could connect to the wifi, and stream from my console or the xCloud and play a game, getting achievements on my account, without having to lug around
a full console and kit. Again, not for everyone, but just might be for someone.

"I don't know what Bluetooth is."

Bluetooth is a wireless technology, it allows you to connect Bluetooth enabled devices to other devices to allow them to be used via wireless, in this instance an Xbox One controller on mobile phone or tablet.

to use an Xbox controller on your phone you'll need to sync it to your device.

As for it being some kind of Scam, it isn't. I've not been able to test home streaming on a phone/tablet, but I've tested out the Xcloud preview and I'm pleasantly surprised!

Just because it didn't work for you or you don't understand how to set it up, doesn't make it scam.

What could it be used for? Imagine being in hotel with a fast internet connection but you've got nothing to do? Xcloud to the rescue. Connect your controller to the Phone or tablet and stream Xbox games to your device. Seems pretty cool.

Captures work fine when not streaming. The problem is down to how the game bar and xbox console companion app work together . The game bar doesn't know what game I am streaming

are you connected through wifi or ethernet cable?

I'm connected through wifi