Nintendo released the version 1.2.1 update for Xenoblade Chronicles 3, addressing several issues to improve the overall experience.
Patch notes are rather concise for the Xenoblade Chronicles 3 version 1.2.1 update. The update address several issues with bug fixes, but the patch notes do not elaborate further on the matter. The previous update, version 1.2.0, introduced support for the latest DLC.
Xenoblade Chronicles 3 Expansion Pass Wave 2 is available now, and a guide about accessing the new DLC content is live here. Lastly, Xenoblade Chronicles 3 is available now worldwide.