Xbox Series X softlocks on the game splash screen/crashes to home menu when trying digital...

Everytime I try to launch a more modern game (8th/9th gen, Xbox one/Xbox series X) that has been installed digitally I'm locked in at the games splash screen infinitely unless I hold the home button then the game crashes to the home menu or the console fully retsarts.

Things that I've tried that work:

Physical disks: Tested with Armoured Core VI, and works just fine no issues. To clarify I'm not settling for physical copies of games as game pass is simply much better value.

Xbox Live/Xbox 360 digital games: Tested with Skate 3, Fallout 3 and Battle Block Theater, all of them work perfect.

Everything else I've tried:

8th/9th gen digital games: Tested Cyberpunk, Psychonauts 2, Palworld, Diablo 2 Resurrected, Forza Horizon 5, Farcry 4/5, Pillars of Eternity 2, Sunset Overdrive. All of them lock up on the splash screen and crash to home when holding the home button. Tested with stuff downloaded via game pass and games I bought digitally too.

Update the console: didn't work

Turned off/on/unplug the power: didn't work.

Factory reset the console: same issue, retested with all of the same games with fresh reinstalls. Tried this at least 5 times now.

Use a new Xbox account: used old and a new account with fresh settings and it didn't work.

Different resolutions: 1080p, 1440p and 4k none work.

Clear the chache: didn't work

Make sure the console isn't overheating: its currently 1°C in my room with lots of airflow and I've been testing right after turning it on, its definitely not over heating.

Change network settings: i completely reset all network settings, and tested across 3 different networks none of which worked. Also tested alternative MAC addresses.

At this point I think I've realistically tried everything bar opening up the console and messing with it. I'm definitely up for this but I haven't seen any mentions of fixes for this issue done physically.

:)