So since I own an Xbox One and a copy of Kotor on the Xbox, I figured I might as well give it a shot.
It is indeed the xbox version. It does look like the pc version, but sadly it's 4 by 3. As you can easily hex edit the .xbe (exe) of many original Xbox titles to force them to run in widescreen (and many titles have native widescreen support) I am quiet disappointed that they didn't put in the extra effort to run the game in 16 by 9.
The biggest advantage this has over the PC version is the perfect controller support, the fullscreen menu, not super tiny UI and subtitles that you can actually read when playing on a big tv.
However, the text is pretty pixelated and so are all icons. The Yavin DLC is also not included, the content download part just informs you that Xbox Live is gone (RIP).
Overall, I am quiet impressed with Microsofts ambition when it comes to backward compatibility. The sole fact that I can pop in my disc instead of being forced to buy again is a huge plus.
However, as someone who still owns an original xbox I'll stick to that. I can still use DLC on my OG Box and as I said many games run in widescreen, I can even get a digital output signal, though that one is 480p for most games.
As for Kotor I'll still stick to the PC version for mod support alone (and you can get pretty good controller "support" with a ps4 controller), but I would definitely recommend this to anyone who has never played kotor before. Anyone's first playthrough should always be without mods anyway, and while Yavin is a nice addition, I certainly don't regret not having it on my first playthrough. It looks very good, has great controller support and seeing those menus full screen on that resolution is something I have been wanting to see for years. Should I feel like doing a vanilla playthrough I might consider this version, though I feel like I'd stick to my OG Xbox in the end. But a lot of people sell their old stuff or never had an Xbox to begin with, and I am really happy that they get to experience this modern classic once again in an updated version. I'd definitely recommend it over the PC version to anyone who has never played it before.
Oh and if anyone needs any files from the original Xbox version, I'll gladly provide them, just sent me a PM. I can't access the Xbox One version for obvious reasons though. And as for MCC: We'll see about their definition of fixing it. Halo CE alone has a hole website dedicated to how broken its MCC version is. And from what they have been communicating it seems like they still see the majority of issues in the UI/stability department, when the biggest issue is that none of the games play like the originals, especially CE and H2. If they actually manage to fix all issues, I'll be fine with their utter lag of 1st party titles.
And as for TSL: The Xbox One would probably run it at a stable 30 fps or even 60 fps. That alone would be such a massive improvement to that version of the game. Sure it'd still have broken quests and we all know how much is missing from that version. But I would certainly love to play it again at a stable framerate. Those massive framedrops are as worse as all the missing content.