If you read the info above, the xbox app has little to do with the xbox. Note that it is designed specifically to support PC gaming and act as a launcher etc.
I cannot understand why everyone is concerned and upset about this.
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I’m not actually sure the xbox app is required to update the sim yesterday - but certainly those having problems getting the update found that loggin out and back in or installing the xbox app triggered the update
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Even if it is required, it is no different to needing the MS Store or Steam or any other games launcher (e.g. Origin, Epic Games Launcher, Ubisoft Launcher, GOG etc)
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It is a helpful thing - e.g. you can save replays to it, contact friends who are playing etc
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You can always uninstall it
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It has NOTHING to do with the console version or some alleged hidden agenda to somehow turn your PC into an xbox. Xbox is Microsofts gaming brand - e.g. Xbox Game Pass applies whether you are using an xbox or PC - it’s not called PC Game Pass.