An Xbox player was given a year-long ban for recording nude scenes in Baldur’s Gate 3.
Any clips you record on your Xbox are uploaded to Microsoft’s servers by default and may be automatically flagged as explicit content, as /u/Daddy-Vegas on Reddit found out when he automatically received a combined 390 day (4+21+365) suspension from Xbox Live for three clips he recorded.
His first appeal was apparently rejected, but subsequent appeals led to his ban being lifted after the gaming press picked up the story.
As perplexing as the thought of “blood and gore good, nudity bad” is, legally I can see why Microsoft would take the heavy-handed approach.
If the dude in the article were to, say, share those scenes with somebody under 18 (which iirc is illegal since you’re distributing pornographic material to a minor), it’s probably not crazy of a stretch to say that Microsoft is legally liable for that happening on their platform. Easier to just do a carpet ban all-around to avoid it in the first place.