Hey there, Friends are tied to your Bungie Account. It looks like when you linked for cross-save, you detached your primary XBox account from its original older Bungie Account (which is where the friends were) and linked it to a newer Bungie Account belonging to your Steam account - rather than linking Steam to the Bungie Account that your XBox account was already using.
I say this because you've got a profile join date of just one week ago, making me think you're now using a newer Bungie Account.
Since you've abandoned the old Bungie Account with the friends list, there's no way to get those 'back', not since the change on the 25th that prevents accounts being unlinked. Your accounts are stuck with the current Bungie Account.
As for fixing things, did you ask your friends to unfriend your old name first before you sent the new request?
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Thank you. And I did not ask them to unfriend my old name, but I let them know that they need to unfriend and send a request. However, my name still shows up as "GuardianXXXX" for friends and clanmates when doing activities.