I’ve heard 23 fox float x2’s where bad but I didn’t expect this

Call Fox, they'll warranty with a 2024 at no cost. The new ones are fantastic.

It's true. There's a quiet replacement program ongoing for all the previous-generation X2s (the ones that failed extraordinarily often). Should be no cost to you (possibly shipping? I can't remember) and then you'll either have a spare shock or one you can sell.

Are there exposed threads around the head of that blue ring? Looks like it maybe didn't get fully seated. 

I run a Super Deluxe or Vivid on everything, but I agree with Chris the MY24 update is really good. The damper shaft seal head has almost doubled in size to fix the cavitation issue, and the tunes are all new too. Worth getting one for free if you want something to try!

Can also vouch for this. Fox replaced a friends cracked float x perf elite shock with a MY24 float x2 free of charge.

Welcome to the (unfortunate) club

My new one leaks air till the 236 psi mark, really annoying.  

just sent in a fox 40 and a float x2 from a 23MY Tues.  They have less than 25 hrs on them and the fork is leaking oil from the air side and the damping side has no compression damping.  The x2 is gurgling like a river and fades really quickly.  Waiting for warranty while the lift is running hurts.  A LOT!  and it's still cool temps here

Yes, it's a really bad shock in terms of reliability.

My 2023 Super Deluxe ultimate shit the bed 30 minutes into its first ride. Sram made me pay shipping both ways 5 days after purchasing a brand new shock to fix it. It's been great after the rebuild. I was not stoked about the service, though, especially considering I purchased a brand-new Lyrik at the same time.