Not quite as bad as it sounds but still very much worth being aware.
https://www.gamesradar.com/xbox-live-and-other-microsoft-accounts-will-soon-be-closed-after-2-years-of-inactivity/
Can they do this if the account in question has bought software against it?
Jonbwfc good question. What I read was more focused on things like the account having money unused in it etc. Didn’t spot anything re games but you would think they’d have to keep it open in that case.
Depends what the dirty small print says when you buy in I guess.