If I am understanding correctly, it is an Xbox issue because game systems do not like virtualization / emulation / containerization functionality because of its potential for enabling cheats. Many test proctoring systems are the same way-- the presence of a virtualization service, driver, or hypervisor will trigger a red flag.

So again, for the huge number of people whose life involves technology there are a lot of things that can throw a wrench into that PC for gaming, and in those cases a console makes a lot of sense. It's a little odd to me that this bothers you so much; surely it is expected that consoles have a good usecase given their popularity?