How does this exactly connect to an Xbox Series S?

You need an HDMI cable from TV to Capture Card, and a second HDMI cable from Capture Card to Xbox. Then you connect the USB C cable from the Capture card to your Streaming PC. Your software (OBS studio or whatever you are using) will then see the Xbox as a Video Capture Device. Hope this helps.

Would this pick up my gaming headset microphone audio on my main pc all so people chatting on discord and in game chat?

Assuming your hooking this up up to your PC, you'll need OBS Studio to capture all audio inputs into the PC. Same will go for output. OBS will capture console video and stream into OBS for recording and Streaming. Hope this helps.

ASIN	B07VWXCXM7
Batteries	1 Lithium Ion batteries required.
Best Sellers Rank	#546 in Computer Graphics Cards
Customer Reviews	4.6 4.6 out of 5 stars (4,123)
Date First Available	August 20, 2019
Item Weight	3.7 ounces
Item model number	10GAS9901
Language	English
Manufacturer	Elgato
Product Dimensions	2.2 x 4.76 x 0.75 inches

4K60 Pro MK.2, Internal Capture Card, Stream and Record 4K60 HDR10 with ultra-low latency on PS5, PS4 Pro, Xbox Series X/S, Xbox One X, in OBS, Twitch, YouTube, for PC

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