Yes I understand that there are some exceptions with some games being online only etc. but even the physical discs (or carts) that only hold a licence are still a valid form of ownership because the physical license that the physical format itself provides can be transferred to another party, like borrowing or gifting it to a friend, or selling it.

And this is what you’re misunderstanding.

There’s no physical license attached to your CoD disc - you need an account to activate it. Your disk is irrelevant.

As long as the publisher/developer is able to just shut-down the game remotely, you having a disk means nothing.

DRM is only partially relevant here because that’s another layer that can be used to block access, but the primary one is how the publisher/developer holds the keys to the kingdom in most cases these days - regardless of the medium the games comes on.