What are "Avatar Items" in Xbox Store?
Example search result in Xbox Store.
In forums they call profiles pictures avatars. But when I look at the cost of that, I think it's more than just a picture.
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You can create an xbox avatar using the Xbox Avatar Editor app
To create a new avatar
You can then use this avatar to create your gamerpic for your xbox profile.
In other words, this is more than just a profile picture. It's an interactive model person that you can create as you see fit. You can choose skin color, hair styles, eye color, clothing, accessories and more. It used to play a larger part of the xbox ecosystem then it currently does.