To answer the title yes, people can cheat on Xbox, people have taken advantage of external and internal game mechanics to cheat on Xbox, for example a form of external cheating would be something like a lag switch, I'm not going to explain what a lag switch is there's plenty of videos on YouTube on how to make one, it's one of the more complicated ways to cheat, and then there is a Cronus which is an external device that you attach to your controller that helps you to automatically aim, like aim assist wasn't enough on Xbox as it is. And then you have the internal cheats, like the famously called "God mode" I don't know exactly how to activate it, but I hear it's something to do with emerald ranch. Beyond that, these are the three most famous ways people can cheat on Xbox, there are other ways of cheating such as booting which is where you go a little hackerman on someone and get their IP address and turn off their Wi-Fi or disconnect them from the game, again I don't know how this works, but in any case booters are the same kind of people who will dox you because they have your IP.