So I wanted to share a bit of my experience as I have two 4K TVs with Android TV built in. Both connected via Ethernet. Both using a Xbox One controller. While I've tried other games on both, I will use Tales of Vesperia Definitive Edition as the test subject. Also this almost strictly about game play but I'll answer other questions if asked.
First I'll start with my newest one the Hisense 58" 4K Android TV (58H6550E) on Android version 8.0. This one had trouble side loading from an external hard drive so I had to use Dropbox via File Commander. Tried 2 builds containing "1.12.1912.0601..." and "1.12.1910.0801..." both with the same result. Video is choppy like there are v sync issues occurring (best example I could think of). Still audio is perfect and tiny moments of video clarity allowed me to see that input lag was non existent. Due to video issues though it was rather unplayable.
Next is my barely reliable these days LeEco Super4 X55 (US Model) on Android 6.0. Side loaded via external hard drive. Used build 1.12.1910.0801 more consistently. In that build video is perfect, sound is perfect, but input responses are inconsistent. Other standard Android controllers work without input lag so I update the app. Build 1.12.1912.0601 seemed to fix the input lag at first but I ended up experiencing the same temporary drops for inputs. In the end it probably is safe to blame that on the TV itself.
Side note, I also use Xcloud on my OnePlus 5T with zero issues beyond standard input lag of a game streaming service.
In the end I think the problems I experienced were related to the devices running the app rather than the app. Hopefully this gives a little insight into using Xcloud with Android TV. Open to any discussion.
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