The installation of the dependancies themselves for some games also come in the form of executables.
The way that steam runs under the hood is that it's a stack of executables (steam -> game installer - > game dependancies - > game executable).
What people are expecting/asking for here is for Microsoft to go and manually verify all dependancies, both current and future, which is frankly insane.
Yep, all someone with these "contacts" needs to ask is whether this future "console" will require developers to go and make specific Xbox hardware versions of games going forwards (which will require Xbox console certification), or if this new machine will simply run PC games and "Xbox games" will simply become a thing of the past.
If its the latter, then everyone knows the answer. They can call it what they want for marketing purposes, they can call it what they want for whatever ridiculous demands they want to make to regulators in the future in an attempt to force Nintendo and Sony to open their hardware up to external stores. But frankly, if it's designed to run only PC games going forwards, then it's a PC.
People can point to what valve are doing with Proton, steamOS and the Steam Deck all they want, and that's fine, but remember, Steam deck is a PC, and SteamOS is a PC operating system:
They aren't mincing their words and trying to confuse/mislead people with all of this, so why are Microsoft? My guess is whatever they are planning on the regulatory side (they want gamepass on other consoles, but the only way to achieve that is by opening up Nintendo and Sony hardware up to other storefronts), so in a way this upcoming device is nothing more than a measured and calculated attempt to try and change what the "console" classification means.
And
that is why they will happily open the system up to other storefronts in the knowledge that people will likely purchase PC games on other storefronts instead of their own.