Yep. You insert the disc into Xbox One, Xbox One X, Series S (if there is a disc-drive Series S model, some rumors it may be digital only), or Series X, and your system installs the relevant files for the version of your console. You put this disc in XB1, it just installs the game. You put it into Series X, it installs the XB1 version then a patch that contains the upgraded graphical assets for the Series X version.
The bad part would be all games needing downloads to have the better visual on XSX.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
Azzanation: "PS5 wouldn't sold out at launch without scalpers."