No, this explicitly doesn't work for Game Pass. You can only play a selection of games you paid for (or free to play ones).

That means most of the average Xbox user's library is not supported, and if you're paying for Game Pass you almost definitely have a physical Xbox that can stream any game you have installed for free.

This has zero value for players. Streaming can have two business models - you pay a subscription to stream games you already own outside the platform like GeForce Now, or buy on the platform and stream for free like Stadia.

Xbox is charging per hour and making players buy games they already own through Game Pass.