The people who made the Xenia Canary Xbox 360 emulator said they are not working with Microsoft on the "Xbox Classics" program that people are talking about. They shared this news in their official Discord group.
They made it clear that they have no links with Microsoft and are not helping them in any way. They also said that Microsoft uses its own tech to let older games run on the newest Xbox consoles, which means Microsoft probably wouldn't team up with Xenia for bringing old Xbox games to PC.
Though a legal deal called an NDA could stop the Xenia Canary team from talking about any work with Microsoft, their clear denial tells us they are likely not involved. If they were, they might have just kept quiet instead of saying no so clearly. So, many think their statement can be trusted.
Just because the Xenia Canary team said no, it doesn't mean Microsoft isn't thinking about bringing old Xbox games to PCs and new consoles. But, this does make us doubt the rumor that said Xenia was a part of it.
The person who first spread the news about the Xbox Classics program still says it's true, and it might come out next year, when Xbox turns 25.
Source: We got this mostly from a post on the Gaming Leaks and Rumors subreddit, which talked about the Xenia Canary Discord group.