Are you still experiencing this issue on the latest version of the game?
I too am on xbox gamepass and getting the exact same error when trying to launch.
I recently got gamepass so downloaded the other day and not been able to run the game yet. I have uninstalled, reinstalled game. Verified files. Deleted program data folder. Uninstalled, repaired, reset gaming services. Done all the tricks that I've read searching for a fix on your forum. Nothing helps. This is the only game I'm having an issue with.
Crash image
https://ibb.co/LdwWdjK
My I7 920 CPU also doesn't support AVX2. However, I have installed a different copy of this game that uses the Epic Games "Win64_Shipping_Client\Launcher.Native.exe" to run and works great. I was trying to install this on game pass so I can play with those friends as well.
So if it AVX2 then you guys broke it on the game pass version.
However, I have tried the launch the game with the Intel SDE CPU emulator that should have worked around this if it was a AVX2 issue so I don't think it is.
From launcher_log_99397.txt file.
Can't reset context
Loading FiraSansExtraCondensed-Regular font, at: D:\Program Files\WindowsApps\TaleWorldsEntertainment.MountBladeIIBannerlord_1.0.21.0_x64__mk53pm3ay0384\Modules\Native\LauncherGUI\Fonts\FiraSansExtraCondensed-Regular/FiraSansExtraCondensed-Regular.fnt
Couldn't find .dll: ..\..\Modules\BirthAndDeath\bin\Win64_Shipping_Client\TaleWorlds.CampaignSystem.ViewModelCollection.BirthAndDeath.dll
Couldn't find .dll: ..\..\Modules\CustomBattle\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.CustomBattle.dll
Couldn't find .dll: ..\..\Modules\DedicatedCustomServerHelper\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.DedicatedCustomServer.WebPanel.dll
Couldn't find .dll: ..\..\Modules\DedicatedCustomServerHelper\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.DedicatedCustomServer.MapServer.dll
Couldn't find .dll: ..\..\Modules\DedicatedCustomServerHelper\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.DedicatedCustomServer.ClientHelper.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.View.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.GauntletUI.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.DedicatedServer.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.DedicatedCustomServer.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.DedicatedCustomServer.Official.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.Platform.PC.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.Platform.PS.dll
Couldn't find .dll: ..\..\Modules\Native\bin\Win64_Shipping_Client\TaleWorlds.MountAndBlade.Platform.GDK.dll
Couldn't find .dll: ..\..\Modules\SandBox\bin\Win64_Shipping_Client\SandBox.dll
Couldn't find .dll: ..\..\Modules\SandBox\bin\Win64_Shipping_Client\SandBox.View.dll
Couldn't find .dll: ..\..\Modules\SandBox\bin\Win64_Shipping_Client\SandBox.GauntletUI.dll
Couldn't find .dll: ..\..\Modules\StoryMode\bin\Win64_Shipping_Client\StoryMode.dll
Couldn't find .dll: ..\..\Modules\StoryMode\bin\Win64_Shipping_Client\StoryMode.View.dll
Couldn't find .dll: ..\..\Modules\StoryMode\bin\Win64_Shipping_Client\StoryMode.GauntletUI.dll
Init LauncherModsDLLManager
Need to verify: Bannerlord.Harmony.dll
Starting verifying DLLs
Couldn't verify dlls
The system cannot find the file specified.
at System.Diagnostics.Process.StartWithCreateProcess(ProcessStartInfo startInfo)
at System.Diagnostics.Process.Start()
at TaleWorlds.MountAndBlade.Launcher.Library.LauncherModsDLLManager.GetDLLVerifyReport(String[] dlls)
Total startup time: 1.5200
Playing sound: default
Setting engine methods at Controller::SetEngineMethodsAsDotNet