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Baldur's Gate 3 will be released on Xbox this year, with split-screen features removed for Series S
(www.gamescensor.com)
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It was a stupid hardware split and a stupid statement to make. Sticking to the ridiculous stupidity wasn't possible. You cannot demand feature parity without CPU parity.
The entire console positioning by Xbox is an absolute clusterfuck. Their naming is a shitshow; recycling the naming for a second generation is a bigger shitshow. Making two consoles with different GPU performance for different graphics targets would be fine, but the CPU difference and memory architecture differences are a fucking disaster.