Xbox PC app will soon let you use mods and custom install folders

It seems you'll be able to move installed games to another location too.

Xbox One/Series) Adv File Explorer (2022) (Retail Mode)

Microsoft's latest update will introduce mods to Xbox Game Pass on PC

How to install or move your Xbox PC games to any folder

CurseForge Minecraft Troubleshooting: CurseForge support

How to Install Minecraft Mods

This app cant run on your PC - every time I try to load a minecraft modpack : r/Overwolf

Modding Bethesda Games on Game Pass - What we know so far at Nexus mods and community

Microsoft makes it easier to mod Game Pass and Windows Store PC games

How to install Xbox PC games in any folder - gHacks Tech News