Latest Update as of March 7, 2025, 7:06 AM PT:
According to a recent announcement from the Xbox Insider Twitter account, the previously reported glitch has been successfully rectified. Detailed instructions have been issued for those Xbox users who experienced issues to restore their systems:
Attention Alpha and Alpha Skip-Ahead #XboxInsiders. The problem is fixed, and you should restart your consoles. If your device was impacted, follow the recovery steps available at Xbox Support. https://t.co/1zbsZeNoK4
— Xbox Insider (@xboxinsider) March 6, 2025
Initial Report:
Be aware: A recent update distributed to Alpha and Alpha Skip-Ahead groups within the Xbox Insider Program appears to be causing a significant issue by deleting user profiles from Xbox consoles, essentially requiring users to reinstall their profiles as if they were setting up a new system.
According to both VGC reports and various accounts from insiders and social media users, this update initially appeared as an optional download yesterday but turned mandatory by last night in the United States. It targets only the Alpha and Alpha Skip-Ahead participants of the Xbox Insider Program; therefore, if you are not part of these groups, you are unaffected.
For those enrolled in the affected tiers, while the update is largely non-destructive, it has been causing considerable inconvenience. The update was intended to fix a minor issue related to user profiles and a specific error affecting some TV models. However, it is inadvertently performing a complete factory reset on Xbox consoles.
In essence, after the update is applied, it prompts the system to initiate the original setup process, requiring users to log into their Xbox accounts anew and reconfigure other settings as though it’s their first time using the console. Thankfully, all previously downloaded games and purchases remain accessible. Nonetheless, personalized settings like the home screen background and quick resume data are being erased, similar to a factory reset scenario.
Regrettably, there are reports from some users experiencing a continuous loop issue where the system repeatedly indicates an available update, fails to install it after download, and then restarts. This cycle reportedly persists indefinitely for some. A handful of users have mentioned that after several unsuccessful attempts, they managed to successfully apply the update, though others are still facing challenges.
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