Backward compatibility has always been Microsoft's focus with the Xbox One.
Even though the Xbox One, and its successor, the Xbox Series S and X, are not exactly winning the battle for gamer's wallets, they are winning a lot of hearts with their attempt to make available hundreds of legacy titles. This includes games first released on the original Xbox console.
This focus only intensified with the recent release of the Xbox Series S/X, as Microsoft wants to make sure that older titles are playable on newer and more powerful hardware. What Is Microsoft Doing With Backward Compatible Games? New Super Lucky's Tale can run up to 120 fps on newer consoles thanks to the FPS Boost feature.
Normally, with backward compatible games, it's up to the game's development studio to put in the work and release performance-increasing updates.
Often, this comes in the form of unlocking frame rates, although in rarer cases, some developers go as far as to rebuild parts of the game from the ground up, in order to make it look and perform better. But, in this case, Microsoft has their own team working hard to create programs that help games scale and color dynamically.
With that said, in their attempt to make older games look and play better on newer hardware, Microsoft has found a new way to take advantage of the improved hardware on the Xbox Series S/X.