this post was submitted on 27 Dec 2024
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Yes, series X and S games can't be played from external storage. You have to move them to the SSD.
Where you might be being tricked is that it WILL work for OLDER games, so if you're using it for backwards compatible versions, it will work fine.
https://answers.microsoft.com/en-us/xbox/forum/all/whats-the-point-of-selling-external-hard-drives/dc0c20dc-0c00-4f32-9aa6-b9b194a3e90c
https://www.seagate.com/support/kb/using-an-external-usb-drive-with-an-xbox-series-x-or-s/