Currently, if you download a game from the Xbox Game Store on PC (or via Microsoft’s Game Pass), Microsoft will allow you to store the game on a specific folder on the local hard drive or SSD.

So you’re running out of hard drive space (maybe on that fast-but-tiny SSD of yours), and you need to move a few of your PC games to another hard drive. Don’t uninstall and re-download them ...

Microsoft looking at ways to “validate” Xbox discs for disc-drive-free consoles Patent application shows secondary device authenticating discs for digital download.