I have XC60 2023. Maybe I can explain this mess with my experience:
AAOS -Android Automotive OS is integrated in Volvo 2022- and usually is enough, but it has a bit older apps and very limited set of them.
Android Auto is mirroring your phone to car screen with google adaptation, much more apps available -still very limited, more uptodate. Volvo support wired AA since v3.3.16 (dec 2024), but if you want to add wireless, you need additional small box, like AAWireless for 60 bucks or so, it works great, almost immediately after you start car. Apple Car Play - similar as above, Carlinkit, Ottocast, ..
I use AAWireless and I'm superhappy with its operation, invisible, fast and reliable.
Few disadvantages of AA vs AAOS
-it sucks phone battery faster than Volvo wireless charger can charge :-(
-touch is less responsive than on AAOS
-almost everything is forbidden by Google while driving, no single text, only voice (SMS, weather, news, ...)
Funny enough, you now have 4 versions of Google navigations apps: Google Maps and Waze on both AAOS and AA. Some of them show also on driver LCD, some of them also on HUD (Maps on AAOS only). Both AA and AAOS still lacks a lot of essential apps, like Teams (just basic support on AA), Zoom, Whatsapp, Viber, proper SMS, USB music play, however you have useless fireplace and so... Google to blame...
Btw. Google Assistant is almost useless in terms of recognition of navigtions locations, I hope they will introduce Gemini soon, first in AA in coming months, then in AAOS in maybe one year.
If you want to have wireless AA and USB drive for music with Audiowagon at the same time, while only one data USB-C port is available - you can add any small USB hub (plenty available in Amazon and USB-C converters) and it will work.
I agree all of that could be done by Volvo itself, but their swedish R&D is sleeping well (no wireless AA/CP, no additional SIM port in TCAM as in Sensus, no 5G, outdated WiFi with weird limitations, very slow WiFi connection, no app for USB music, no music info on driver LCD, useless center key on steering, very limited Settings, ...),... maybe new UX will bring some improvements on SW at least...