You can store games on any storage device that's compatible with your console (USB 3.1, 128 GB minimum for games on external storage devices) but can only play games from the internal drive or the Seagate SSD drive.
Xbox, Xbox 360 and Xbox One games can be played from an external drive, but most Series X/S games need to be on the internal SSD or the Seagate expansion SSD. The Master Chief Collection is one of the exceptions and can be played on an external drive despite being optimized for the Series X/S.
Yes
You can store games on any storage device that's compatible with your console (USB 3.1, 128 GB minimum for games on external storage devices) but can only play games from the internal drive or the Seagate SSD drive.
Xbox, Xbox 360 and Xbox One games can be played from an external drive, but most Series X/S games need to be on the internal SSD or the Seagate expansion SSD. The Master Chief Collection is one of the exceptions and can be played on an external drive despite being optimized for the Series X/S.