OK....So I figured it out. I tried everything Paulo and Greg said and it didn't really help...portions of different areas were right, but you have to do it a special way and order that wasn't listed elsewhere.
What ultimately worked was formatting the drive BUT not in the usual way. I had to go to Disk Management and format using that BUT you have to DELETE VOLUME first and then format the drive again. Then you would have to go to default app save location setting again and choose that drive. IT WILL FAIL! Then you delete Windowsapps folder from that drive and restart the PC. Once you restart and log back in you go to XBOX app and attempt to install a game to drive again from the XBOX App and BOOM it worked. Odd....