Some Xbox One games were dumped shortly after launch, however these ISO's have never been playable.
To me what you have quoted reads this is a dumped ISO, however will never pass as complete due to missing data such as the security sectors. The same happened during the early days of the 360, games could be dumped and then later played by flashing custom firmware to the 360s DVD drive. However these ISO's were not 1:1 copies of the original due to missing various bits of data a normal drive could not dump.
A good summer of the Xbox One scene exists here:
https://consolemods.org/wiki/Xbox_One:Scene_History - at no point has playing burned games ever been possible.