I am not defending anything, I present facts... which is crazy right? facts... you can mod games bought on the Microsoft Store (also stop calling them gamepass games... not every game in that store is in Gamepass) that is a fact. look up some Halo mods, the game has a separate launcher even for mod support (so to not interfere with the unmodded game). Minecraft is also easy to mod
meanwhile, go and try to mod any modern game on Steam... most of them you won't be able to mod without jumping through 20 hoops or getting banned.
also, no it's still cheating. just because you give the developers money for your cheats doesn't change that. it has the same outcome as entering a cheat code in a PS1 game to unlock a car you would otherwise need to grind for.
there is no "integrity" which was one of the original defences you came up with. it's simply people playing to unlock or people throwing money at their screen to unlock. either way, cheating or not, the integrity of the game is gone and to the normal user it would make zero difference how that rich guy got his cars.