Interacting central spin systems, in which a central spin is coupled to a strongly correlated spin bath with intrabath interaction, consist of an important class of spin systems beyond the usual Gaudin magnet. These systems are relevant to several realistic setups and serve as an interesting platform to study interaction controlled decoherence and frustration induced instability of magnetic order. Using an equations-of-motion method based on analytical representations of spin-operator matrix elements in the XX chain, we obtain exact long-time dynamics of a generalized Heisenberg star consisting of a spin-$S$ central spin and an inhomogeneously coupled XXZ chain of $N\ensuremath{\le}16$ bath spins. In contrast to previous studies where the central spin dynamics is mainly concerned, we focus on the influence of the central spin on the dynamics of magnetic orders within the spin bath. By preparing the XXZ bath in a N\'eel state, we find that in the gapless phase of the bath even weak system-bath coupling could lead to nearly perfect relaxation of the antiferromagnetic order. In the gapped phase, the staggered magnetization decays rapidly and approaches a steady value that increases with increasing anisotropy parameter. These findings suggest the possibility of controlling internal dynamics of strongly correlated many-spin systems by certain coupled auxiliary systems of even few degrees of freedom. We also study the dynamics of the R\'enyi entanglement entropy of the central spin when the bath is prepared in the ground state. Both the overall profile and initial growth rate of the R\'enyi entropy are found to exhibit minima at the critical point of the XXZ bath.