The series S will just be fine and there would not be any reason to drop feature to support it unless it's visual qualify oriented like ray tracing.
So far all game on series S are feature complete and they constitute literally hundreds of proof attesting to exactly this.
The choice of the game engine will always have much more impact on a game feature especially when the difference in CPU power is only ~5%.
If you view the Xbox series X and S from another point of view there's no real difference when handling game for X and S compare to handling title for the Switch docked vs handled. (Switch GPU literally goes from 768Mhz to 300mhz making the power difference ratio very similar to X vs S). Except that with the switch your are forced to use the same assets while you have the option to be more efficient with the Series S and use lower quality assets like 1080p texture instead of 4k one.
And the Baldur gates 3 split screen issue is blown way out of proportion:
The game is literally still months away.
We don't even know when they started working on the series S version.
The issue is very specific.
What resolution they're trying to target with and without split screen. (EX: they could very well focus on a 1080p experience instead of going the easy route and just dropping to 900p)
What assets quality they're going for.
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