What are the capabilities of an XBone theme?

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Hi. Please let me know if this is the wrong place for this question. I didn’t see this answered in the intro/sidebar for this subreddit. I’m fairly new to the XBox One and would like to know what capabilities/functionality the XBone themes have, including the difference between a background and a theme. I see both these terms used and I’ve tried using the Theme My XBox (TMX) app and don’t see anything besides a background change when I set a theme.

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