There is no issue with the Series S. The S has everything it needs to run Series X games. Balders Gate having issues, yet the Matrix Demo run on the Series S has some questions that need to be raised with the Developer or MS tool set given to Devs.
We heard this before when Dying Light Devs came out and said a Performance mode for Series S wasn't possible, then months later released a 60fps Performance mode for the Series S.
If anything, the Series S points out laziness with Devs and publishers. It's a great option and piece of Hardware to help those in financial need yet still want to play next gen games. PCs offer budget cards, why can't Consoles.