Xbox OS is a custom version of Windows 10
And yea, they have emulators compiled with the games, like SNES on Wii U. Basically I'm asking for those emulators to be reverse engineered to make a sideloadable UWP app which can boot from disc like PS1 emulators on PC let you do. Or some sort of injection tool, though the latter might be detect and banable and there's the matter of acquiring ISOs, whereas a UWP emulator running in dev mode shouldn't breach anything.
Reason I care is I'm planning on buying an Xbox One S after making the mistake of selling my OG XB1 last year, and theres a few niche 360 games that I've previously played/discovered after selling my 360 that are unlikely to be added, and I don't have the space for a console dedicated to a couple of games that the Xbox One is neglecting.
I do hear that there is a PC emulator making leaps, maybe if there's some way for me to read 360 discs on my computer that's another option.
Unless they've changed it, Xbox OS last I heard consists of a hypervisor and separate VMs for games/apps.
The Xbox One also doesn't read from the disc but
downloads the entire game and uses the disc for DRM.
Dev mode last I heard has restrictions which may make what you want to do difficult if not impossible e.g. RAM restrictions, SDK restrictions, etc. Assuming that it's possible to decompile the app in the first place (never looked into this). I'm sure we would have seen mass piracy by now if this was simple enough.
This is why I said it's unlikely we'll see any injects (if possible at all) until the OS is hacked.
It's also unlikely that you'll see a PC emulator read games directly due to the nature of the disc (XGD), at least not with a normal PC drive. The PC emulator though has made progress, Halo 3 is playable but with lots of graphical glitches.