2. California recently passed a bill which would fine companies which fail to prevent kids from accessing features which are "detrimental" to children's health [1]. Naturally, Microsoft doesn't want to get fined for what edgy gamers say online.
3. (speculation) The censorship police that have infected every other major online platform have now reached gaming.
[1] https://techcrunch.com/2022/08/30/californoa-childrens-onlin...