With Windows 11 release, Microsoft has announced the updated Xbox application that is now pre-installed in Windows 11.
On Mac computers with Apple M1 chip, free games can be downloaded with no issues. However, paid games are not - Something unexpected happened error message appears.
The application shows the banner Having trouble installing and launching games? by default, but suggested troubleshooting is not applicable for Windows 11.
Upon checking the same scenario on a native ARM-based Surface machine the same behavior was reproduced that means this is not a virtual machine-specific issue.
Since the issue persists on native ARM-based machines, please contact Microsoft support to ask for further assistance.