Could this be the Series S? Just the product name is still a temp one? Would make sense calling the Series S the "One S V2" since thats kind of what it is. $299 seems cheap for series S though. But maybe that's their way to show Sony up.
In Target DPCI speak, 207 is the department (video games), 31 is the class (Xbox One), and the last four digits are the item. Each console has a different class. Presumably, the Xbox Series S/X would have a different class designation (like 207-46-0001 or something), not reuse the Xbox One class.
I wouldn't get too hung up on the pricing for this SKU. Prices can change in Target's system all the time, and $299 is currently still the official MSRP for the Xbox One S. This could be a product introduced alongside a price drop, but it would 't need to have that price now — the price could be changed later.
I think this could be a "PS3 Super Slim" or Xbox 360 E style late-stage cut-cost model.