Microsoft Flight Simulator 2020 code includes references to an Xbox-compatible VR mode for the next generation of consoles. Could this be a clue that Microsoft are currently working on VR support for Xbox Series X|S?
Microsoft already confirmed that VR support is something that will not be available on their next-generation consoles Xbox Series X and Series S. "We're not going to do that. I understand certain people would want that. We have to focus our efforts on the things we're doing right now. And the most precious resource that we have is the team and their ability," Phil Spencer said about VR support on next-gen Xbox.
However, it looks like Microsoft at least tested the concept of VR support on Xbox Series X and S. In Microsoft Flight Simulator game files, user Cygnifick have found a snippet of code that references both PC VR support and Scarlett VR. As you may know, Project Scarlett was a codename for Xbox Series consoles early on.
And while the code in the game files suggests that Microsoft could be working on a VR solution for the consoles, this seems unlikely since the company made it clear that the VR market is something that is not of interest to them at the moment.
Whether this changes in the future, potentially when VR games gain more popularity and VR devices become cheaper, well, it remains to be seen. It is safe to say that the VR market has stagnated in the last couple of years and that's only one of the reasons why Microsoft decided to drop VR support on Xbox One X too, back in 2017.