We asked The Coalition's studio technical director, Mike Rayner, whether any optimisation or conversion was required in bundling prior Gears of War titles into the Ultimate Edition.
"It is essentially the exact same code," Rayner replied. "The Xbox team converts the 360 game and 360 flash PPC executables into native x64 executables, packages those up with the 360 game assets, 360 flash and emulator as a regular Xbox One game, and publishes it."
And this explains why we can't have immediate backward compatibility access to every Xbox 360 game in our library: the Xbox team itself seems to be recompiling the original PowerPC code to run on the x64 AMD Jaguar cores integrated inside Xbox One. This revised code is then bundled with the original game assets, along with x64-based versions of the Xbox 360 OS itself. In effect it seems that the Xbox team is able to quickly produce streamlined ports of original Xbox 360 projects. It's a remarkable achievement, and perhaps also explains why so many simpler titles are in the initial batch of backward compatible titles.