I've seen this quirk before in many games. No clue what causes it but in my experience sometimes jumping from Windowed -> Fullscreen or the reverse will solve this.

I haven't experienced this specifically, but I've had seemingly related issues with games having trouble entering fullscreen mode, or not getting the mouse or keyboard locked to the game window in question, forcing me to alt-tab a couple of times before I can interact with the game. The only thing I've found that lessens the issue on my end is to minimize or close as many unnecessary windows as possible when playing games, including the Steam windows. If the only window that's open is the game's, it very rarely happens.

Could maybe be worth trying to disable Windows' built-in game overlay in the Xbox App. I could see that messing with these kinds of things.