Not sure about that. Some settings exist for PC but not for consoles that is a difference I am seeing but for the ones that are shared between platforms I don’t know how to determine if the impact of changing a setting would be different.
By “new settings for AI aircraft” are you referring to those 2 options ?:
Those settings are for Live and AI offline traffic.
If you select AI offline:
there is no traffic at all, seems to be an issue. A report exists but has been closed (AI OFFLINE traffic disabled, trafficAircraft.bgl is empty). So Live traffic cannot be replaced by an AI traffic and even if AI offline traffic was working I don’t think that if Live traffic is enabled there is a logic to replace some of the aircraft by AI traffic. If you can demonstrate it then yes it should be treated as a bug (IMO), separate from this report.
To go back on your original issue, it would be interesting to get some feedback from others Xbox (or PS5) users.