Snow tires for a 2026 XLE and 17" wheel size

That shouldn't be, if you've appropriately sized the tires. Basically if you reduce rim diameter, you increase the tire's profile number, to roughly match the stock tire's outside diameter. Or you should; otherwise, as you say, you're messing up ride height, the odometer, and so on.

For example, if the stock 17" tire's profile is 60 (percent, height divided by width), to achieve the same OD with a 16" tire you'd need to go to at least 65 or 70. You can adjust width as well, within limits.