Hello, thank you for reaching out to Microsoft Q&A.
Error code 0x80070005 usually indicates Access Denied and usually happens due to missing permissions or files.
If you're still experiencing the same error even after doing an in-place upgrade (Running an ISO), it could be a permission issue.
- Create a new Windows local user profile - Click Windows + R key, type Netplwiz, and click ok.
- Select Sign in without a Microsoft account (not recommended).
- Select Local account > Create a username and password.
- After creating, sign out and then sign in with the local user profile.
- Install the Xbox app from the Microsoft Store.
https://apps.microsoft.com/detail/9mv0b5hzvk9z
Let me know if it worked on the new local user profile.