Hey there. As of the 25th of March, it is no longer possible to unlink accounts. That means that unfortunately the old Steam account is now permanently linked, with no possibility to unlink.
With that in mind, there's no reason to cancel cross-save. If you did however, it would make your XBox characters become playable on XBox only for 90 days, you would lose access to them on Epic until cross-save was set up again.
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That's right yes. In the old system, you'd A) cancel cross-save, B) unlink/link accounts in Settings, C) wait 90 days, D) set cross-save up again. But now it is not possible to unlink accounts at step B, so on the Activate cross-save screen, the only accounts available would be the ones you have there already, there's no way to change them.