@johnny55,
As I suspected after I updated from 26058.1400 to 26063.1 using the ISO I did not get the problem with Xbox Identity Provider because it was already previously updated to the latest version while in Development channel.
You can see that now the in this Canary system the version is already 12.110.15002.0.
Seems confusing, but it explains why it did not fail. 😉
Edition Windows 11 Pro
Version 24H2
Installed on 2/22/2024
OS build 26063.1
Experience Windows Feature Experience Pack 1000.26063.1.0