I bought a new xbox for a family member because the old one broke down and i wanted to give them my home xbox so they have games and xbox game pass. The home xbox doesn't work as before, they have to sign in my account to get access to any game and game pass but on the old xbox they never had to do this and the website confirms that they don't have to sign in my account.
Website quote:
"Friends and family that sign in to your home Xbox have access too, even when you're not signed in. For instance, a family member can play your games when you're not using your console—they just need to sign in with their Xbox profile."