XeSS 1.3.1 brings bug fixes
Intel is still working on XeSS, but updates still do not mention open-source or frame generation.

In April, Intel released a major update for its XeSS upscaling technology. This update introduced new quality profiles and improved quality, particularly in anti-aliasing, ghosting reduction, and temporal stability.
Intel has now provided a new update, listed as SDK 1.3.1. The latest SDK update does not provide extensive changelog details, only mentioning stability improvements and bug fixes without specifying them.
The good news is that Intel continues to develop XeSS, giving gamers something to look forward to. On the downside, there is no clear roadmap, and there is no evidence that Intel will introduce its own frame generation technology. However, with the release of FSR 3.1, developers can now enable gamers to use FSR Frame Generation alongside XeSS upscaling.
Additionally, the topic of open-sourcing XeSS, which Intel promised nearly three years ago, remains unaddressed. The XeSS GitHub is filled with comments on this issue, but Intel has not responded to any of these requests directly.
According to SteamDB , there are now 228 games and applications with XeSS support. This is a significant increase from last June, when Intel was celebrating official support for 50 games.
Source: Intel