If the only way to get the update for new consoles is to purchase the Ultimate Edition then the update is not free. I wonder if this was Remedy's decision or their publisher. Either way this is a crappy move. I own the game for PS4 but if I had it for Xbox I'd be pissed. MSFT's Smart Delivery is being circumvented and running contrary to that program and its intended use, you know the whole "buy a game once and play the best version" at no additional cost.
I'm hoping that it was 505 games that made the call. If Remedy decided that, I'd legit be surprised. Not a good look regardless.