Console or handheld support
Xbox lists the card as compatible with Xbox Series X and Series S. Xbox Support says Optimized for Xbox Series X|S games must be installed on the internal SSD or an expansion card to play.

The original Xbox Series X|S expansion card. It plugs into the slot on the back of the console and runs Series X|S games like the internal SSD.
We may earn a commission.Xbox lists the card as compatible with Xbox Series X and Series S. Xbox Support says Optimized for Xbox Series X|S games must be installed on the internal SSD or an expansion card to play.
StorageReview found no real difference between loading games from the card and from the internal drive.
StorageReview's 1TB card showed up as 920GB of storage on the console.
Seagate says the card plugs into the console's expansion storage slot.
A USB drive cannot run Xbox Series X|S games, only store them. An expansion card can. Three drives matched to the games you play.