always thought monolith soft were a bigger developer, really suprised

Wowsies. I hope the staff got some well-deserved vacation (and a nice bonus) afterwards.

Honestly this makes the flaws of the game even smaller for me, and even more excited for what Xenoblade Chronicles 3 will be if the full team will be working on it (especially after the great sales of Xeno 2)

By items I meant equipment. Try selling multiple fiber hats or scythe attachments at once.

Depends on how you play, but if you are grinding for certain chips or rare / legendary cores by killing certain enemies stuff builds up. And it is difficult to navigate if you have pass through 20 of one item alphabetically to get just get to the accessory item you want to equip on either a character or blade.

Some things have already been patched like the map. Though one issue of polish that is still a sticking point for me is ally-AI, which is incredibly stupid. I've wiped dozens of times against mobs I should beat because my allies wouldn't stop standing in pools of poison or just decide to position themselves at the edge of a ledge where they easily get pushed off. I also feel the game could run better in terms of the dynamic resolution and framerate given some more work, though I don't have the expertise to say that for sure.

The game suffers some real balance issues between mobs as well, two different mobs of the same level will be a vastly different difficulty in an actual fight. Also high level mob placement is often unnecessarily problematic. Though these largely can be overcome through familiarity with the mobs and what their strengths/weaknesses are.

I personally dislike the quest tracking system as well which basically just allows for one quest to be tracked at a time along with the main story quest. Not the biggest issue but I'd prefer something more like WoW/FFXIV where I can have maybe 5 quests on my HUD at once. Also the reliance on RNG to get rare blades is annoying and just induces the necessity for more grinding, however that isn't really polish so much as choice of style which is pretty common to JRPGs.

Pretty much everything. Now, I'm not trying to troll or being hyperbolic, but it's what I've been feeling for the last two months. For every good thing, the game fucks it up in two or three aspects more, whether you call it narrative, art style, menus, gameplay systems (mainly the so special field checks), navigation, character movement, combat... That's not to say I don't like it, because I love it, but it's more terrible than good. 

I experienced no glitches on either of my 2 playthroughs of Xenoblade 1, but in a single playthrough of Xenoblade 2 I came across some.

I've had the music glitch out on me on several occasions, where a field battle is followed by silence, with the background music only kicking in once I re-enter then finish another battle. The map not even opening to the area you're in at launch was a pretty glaring oversight. Handheld resolution is very low.

Oh wow, I skipped XCX since I never got a Wii U, that is good to know.

What I mean is the quest system in the first Xenoblade game is glaringly unpolished compared to anything in XC2 - XC2’s quests and heart to hearts are much more polished. Some of the issues included quests filled with blockers, lack of direction, and tons of obscurity. They were presented as flavour text + a fetch list of tasks, like some kind of cheaply made generic Facebook game; it screamed placeholder.
Character models look very muddy. There are many many textures that look like placeholder for final 3D modelling. Lots of incomplete/missing/disjointed animations. Balancing was also quite bad in XC, it has some of the worst spikes in the history of the franchise (maybe only topped by Xenosaga Episode 2); but also battle lengths were longer than any Xenogame - a good 50-75% longer than XC2, although XS Episode 2 battles may have been more excessive.

While XC2 was unpolished, everything still felt more polished than the first game, and perhaps XS Episode 2 And 3 - XS3 definitely had a lot of missing cutscenes replaced with simple dialogue box segments even though they actually recorded voiceover. It’s one of the things I would love to see fixed if they ever remake the game.

Also, on audio options, it is far more polished than any previous Xeno-game. They’ve never had that level of control before. The only major downgrade from XCX on the audio front was the battle dialogue - they recorded a lot less of it. But XCX’s battle dialogue was exceptional, I think XCX’s battle dialogue may have been higher than any other game ever made. I know there was something like a novel’s worth of voice work for that portion alone.