I had this problem today and went searching to see if there was a solution so stumbled upon this thread.
Here's what I did to fix it:
On your drive with the xbox games you need to copy a hidden file called .GamingRoot to the drive where you want to install the games.
Then on the game in question you need to right click it, select 'manage' and enable 'advanced installation and management features' then move the file to the default location which for me was C:/xboxgames (it must have been somewhere else before as that folder had nothing in it and you have all that permissions and hidden folder structure for these games.
I need to restart the PC before i was able to select the new drive under xbox settings, 'general', 'game install options'
I was then able to move the game folder across to the new drive by right clicking the game, 'manage', files tab, 'change drive.'
Was a massive faff since you can do this kinda stuff easily in Steam.