Make sure the "Allow HDR" option is checked if you want to maintain high dynamic range colors, and ensure "Allow variable refresh" is enabled to prevent screen tearing. Your television or monitor needs to support a 120 Hz refresh rate to actually show the extra frames generated by the console.
Xbox Series X 120 FPS Controller Settings Guide
Press the Xbox button on your controller to open the guide, then navigate to Profile & system, followed by Settings. 1 cable to carry the bandwidth required for 4K at 120 Hz.
Change the Resolution to 4K and the Frame Rate to 120. Enable the Setting on Your Console The configuration is done entirely through the software interface of the Xbox Series X.
Xbox Series X 120 FPS Controller Settings Guide
This gives you the flexibility to run at 120 Hz without necessarily being tied to 4K, though 4K is usually the preferred trade-off for clarity. Most modern 4K televisions are, but it is worth confirming.
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