Welcome omega21314,
I understand how frustrating it can be when you are trying to install Terraria on your PC through the Xbox app but only see the cloud gaming/streaming option instead of a local install.
To help identify the fastest resolution, please confirm the following:
- Are you trying to install Terraria through Xbox Game Pass, or do you own it separately (for example via Microsoft Store or Steam)?
- When you open Terraria in the Xbox app, do you see an Install button at all, or only Play via cloud?
I look forward to your reply so we can continue working together to address the issue.