X-out board means that the boards marked are not qualified, the trace maybe damaged during the production, or cosmetic issue on board surface. Normally PCB manufacturers will do some obvious mark to distinguish the X-out board. Some SMT factories require mark the fiducially marks of bad boards with black ink, some require X shape on surface of Bad board. Some don't accept X-out board.
When we make multiple boards in one panel, it will be easy to have X-out board, and what's more, we panel more pieces board in a panel, there will be more pieces of X-out board.
Some of SMT manufacturer didn't accept X-out board, since it will influence the production efficiency. Because this kind of circuit board and can't absolutely avoid in the PCB process, the more pieces in one panel, the more the number of circuit board will be scrapped, the more relative costs will increase.
Circuit board manufacturers hope that the less number of pieces in panel, the better, because it can avoid the loss of X-out board, of course, if the board factory has been unable to overcome the loss of X-out board, the final price will be transferred to the customer.