Throttling is totally normal and it's actually a safety feature working as intended. Modern laptops, especially thin ones like the XPS 15, will absolutely throttle when temps get that high. Your chip is basically saying "hey, I need to slow down before I cook myself," and that's exactly what should happen. 85-90°C is in the thermal throttling zone for most processors, so your system is doing its job. It's not ideal for performance, but it's protecting your hardware from damage.
That said, hitting those temps under load is pretty aggressive even for a 2024 XPS 15. The XPS line runs hot because Dell prioritizes thinness over cooling, but 85-90°C consistently suggests either your cooling solution needs cleaning or the thermal paste between the chip and heatsink might be drying out. Try blowing out the vents and fans with compressed air first - dust buildup is the most common culprit and totally fixable. If that doesn't help, you might need a repaste, which is either a warranty service call or a DIY job if you're comfortable opening it up.
Long-term damage from throttling itself isn't really a concern - that's the whole point of the feature. But sustained high temps do accelerate component degradation over years, so getting it sorted is worth doing sooner rather than later. You're not in emergency territory, but it's worth investigating before those temps become the new normal for every workload.