Move MSFS2020 to New Drive

I think you are confused about the Launcher.

The Xbox screen can be confusing to read as it kind of reads
that the the 2.07 GB being installed on the D: drive.

My Xbox screen:

But only the “Installed Packages” are on the D: drive. Not the Launcher.

My Xbox change drive screen:

I may be wrong but it seems that MS refers to the “game” as being the “Installed Packages” and not the “Launcher”.

I cannot verify because I cannot access the Launcher to see
where it is located and even what it is.
So, I don’t know.

I will defer to @TenPatrol to correct me.