You can use the Xbox app on your phone as a keyboard for the console. Or you can connect a physical keyboard.
Do you work for Microsoft by any chance? :)
I mean, come on. The vast majority of services that have apps running on TV implemented QR code based login workflow ages ago, and it just works. For Xbox, logging in is always a struggle.
I just bought an Xbox Series X and logged in via QR code and Xbox app on my phone. No need to type into the console.