It is so annoying how companies insist on dictating what we can or cannot do with the hardware we've already paid for. It's doubly annoying when you consider how it contributes to e-waste because it limits our ability to repurpose these things for other use cases. My old PS4 is just sitting in my closet gathering dust because I don't have an old enough firmware that let's me put Linux on it.
I guess the fact that consoles are usually loss leaders are a major contributing factor to why these devices are so locked down, but still...In this case, Microsoft is preventing emulation enthusiasts from running in retail mode and partaking in their game store! Maybe they just don't want the legal repercussions of dealing with Nintendo or something.
If emulation is your jam, I highly recommend just building a small form factor PC or going with a mini-PC instead. More expensive in the short term, but less troubles and more flexibility in the long-term.