Shadow's storage is formatted with an NTFS file system, which is beneficial for several reasons. If you're trying to install a game you've downloaded from the Microsoft Store or Xbox Game Pass, you may receive an error due to your hard drive's NTFS format.
Solution
To change your drive's format, you'll need to reset or reformat your drive.
If you're installing a game onto your (C:) drive, see how to reset your primary storage. For your (D:) drive, see how to format your additional storage.
🚨 Important: The following information will wipe your drive's data. Make sure to save your work on Shadow before you continue.
To reset your primary storage
Log in to your account page, then click My Shadow. Click Reset my Shadow and delete all my data.
Resetting Shadow will not affect anything saved on your additional storage.
To reformat your additional storage
Reformat your additional storage following the instructions below. These instructions will delete everything stored on your additional storage.
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Open the Disk Management app by pressing WIN + R and entering "diskmgmt.msc", then hit Enter.
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Right-click the (D:) drive in the grid at the top and select "Delete Volume...".
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Right-click on the "Unallocated" space at the bottom right and select "New Simple Volume...".
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This will format the unallocated space as drive (D:). Make sure the Allocation size unit is set to 4096; all other parameters should be set to their default value.
To use the (D:) drive for Xbox Game Pass:
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In the Xbox app, click your profile icon at the top and select Settings.
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Click General on the left.
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In the "Drive selection" section on the right, click the "(C:)" dropdown and select "(D:)".