Apparently this is "still the plan", and the next Xbox console's dashboard will be a customised version of the Xbox Full Screen Experience UI that's currently present on the ROG Xbox Ally handheld.

The Xbox Full Screen Experience (or FSE) debuted late last year on the pricey Asus ROG Xbox Ally X, steadily trickling out to other Windows-based handheld gaming PCs and more traditional gaming desktops over the following months.