The story i heard directly from a couple of Newport engineers and from Henry “Rody” Rodeschin on multiple occasions was that the XGI was only capable of 4” or so groups at 100 yards which upset the old man greatly and he did not want “his name” on a version of the M14 that wasn't capable of much better accuracy so he demanded that the engineers come up with a solution. (Ruger had already announced the rifle and manufactured at least 250 of each caliber rifle at this point — I have heard 500 of each caliber or even more sat in the warehouse as the old man refused to release them.). The engineers came up wiht a simple soliton, they added an after market harmonic barrel stabilizer to the XGI and the problem went away, MOA accuracy at 100 yards.
They presented their solution to the old man….he flew into a rage, and it pissed him off so much, that then and there, he declared the XGI dead….and the gun disappeared from the Ruger catalog and all dealer price sheets etc. The finished rifles sat in inventory for years. I have heard that they were eventually scrapped but a few of each caliber rifle escaped the factory either by employee sales or auction. The one or two auctioned were the rifles that were in the model library in Southport, not the ones in inventory storage in Newport. I also heard that they were still in inventory as they were depreciated down to zero value….only the current management knows for sure!