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Correct.
No, its due to the fact that Steam controls the modded content via their workshop system. Epic players do not have access to this because they didnt purchase the game through steam. Epic is a direct competitor with Steam and while it was surprising to begin with that cross play was allowed between the two its not surprising that mods would not be allowed to be accessed.
Think on it like this too: PS4, Xbox/Win10UWP platforms also do not have access to modded content.
They will so complain to them I guess.
OK, here is why.
ARK has, or at least had... I don't know if they kept it up, a turn key solution to do crossplay with all of their versions (Pre-Switch and Mobile). The Console Makers would not allow it.
ARK on Steam uses the networking backend developed by Valve and that is used by many games on Steam as it saves them making their own. ARK on XBox/Windows Store uses theirs, and ARK on Playstation uses theirs.
Steam has an integration for User Content, which includes mods, which is the Workshop. The Consoles treat Mods as Updates, which devs/publishers have to pay to get certified, which costs thousands of dollars (some major updates on consoles can top $10,000 USD each) and if a part of it is not to the liking of the Console Maker they have to change it and resubmit/pay again. The only way they will allow mods is if it gets folded into the updates and almost no games are willing to go through that. Therefore no mods on console.
Then Epic Game Store comes along. Epic makes the engine and hosts the modding tools used for ARK so they want ARK on Epic. Wildcard then has to work with Epic Game Store to build a version of the backend for ARK on Epic Game Store as they don't have that yet.
Wildcard and Epic made ARK on Epic compatible with ARK on Steam but Epic Game Store doesn't have a version of Steam's Workshop YET (they say they are building one for all the games so it will take some time) so until then Epic players can only play on vanilla servers without mods, but modified settings will work. There are even features for servers to block players from the other store if they want.
So the reason why players on Xbox/Windows Store can't play is artificial and you can thank Microsoft for that and you can blame Epic for not have as developed a storefront/backend as they should.
As for Wildcard they had wanted all the owners of ARK to play with each other until they released the Mobile version. Whether big daddy Snail Games wants that now may be a different story.