In ArcGIS Pro, it seems like XY Event Layer functionality has been removed from context menus.
It was easier to create XY Event Layers in ArcMap. Just right-click the layer in the TOC:
Whereas in Pro, right clicking gets us a "Display XY Data" tool, but that's misleading because that tool produces a static output in a FC. That's not what I want; I want to create a dynamic event layer.
The "Add Data" context menu in Pro doesn't have an XY event layer option either:
The same thing applies to linear referencing Route Event Layers. That functionality has been removed from menus too.
Is there a reason why event layers were made less convenient? (removed from the menus)
Good question! One of my biggest complaints about Pro (the lack of context-menu options, not XY Event Layer specifically)
If you need the tool frequently, you could customize the ribbon or add the tool to the Quick Access Toolbar.