If I go to system information > Thunderbolt/USB4 > Pro Display XDR then I see the same thing as you: firmware version 55.2. I believe this is the firmware version for the thunderbolt controller.
My XDR display says firmware version 4.2.37 in system information > graphics/displays > Pro Display XDR panel.
Edit: I wish I could help with your lack of smart functions issue. That's got me stumped.
That's not true. XDR supports DP with DSC (Digital Stream Compression) when connected via USB-C with DP Alt Mode and needs only 10 gbps USB-C cable to work. This is the way how my current setup works with USB-C KVM switch. The only downside here that USB ports are limited to 2.0 speed.