If geometry is not specified, it throws an error. I would expect it to use the image geometry if it is not specified.
import ee
import xarray
ee.Initialize(opt_url='https://earthengine-highvolume.googleapis.com')
image = ee.Image("LANDSAT/LC08/C02/T1_TOA/LC08_044034_20140318")
ic = ee.ImageCollection(image)
ds = xarray.open_dataset(ic, crs='EPSG:32610', scale=30, engine='ee')
ds

By specifying the geometry, it can open the dataset successfully. However, it seems the XY coordinates are always in EPSG:4326 no matter what crs is specified.
ds = xarray.open_dataset(ic, crs='EPSG:32610', scale=30, geometry=image.geometry(), engine='ee')
ds

If geometry is not specified, it throws an error. I would expect it to use the image geometry if it is not specified.
By specifying the geometry, it can open the dataset successfully. However, it seems the XY coordinates are always in EPSG:4326 no matter what crs is specified.