Xbox Insider members should keep an eye out for the latest update as they could end up with another 1st time experience upon rebooting their console. Sadly, with just about any kind of technology that receives updates there’s always a risk of things going sideways and giving users an unwanted surprise. This time around members of the Xbox Insider program have had the misfortune of becoming test subjects who have encountered the woes of an update gone wrong. According to Microsoft, update 2504.250227-2200 (Alpha Ring) was only supposed to address the following fixes.
Per Xbox Support:
Capture & Share
- Fixed an unexpected error (0x82323990) that could occur when uploading captures to OneDrive that had not already been uploaded to the Xbox network.
Games
- Fixes to address an issue that could cause some titles to close unexpectedly, such as PGA 2K25.
Installation
- Fixes to address an unexpected error that could occur when installing games on an Xbox One that have both an Xbox Series X|S and Xbox One version, indicating the game is not compatible unintentionally.
System
- Various updates to properly reflect local languages across the console.
From Known Issues to a full-on Factory Reset
Microsoft has indicated that it is still investigating a matter of the Xbox console not properly detecting Dolby Vision with various TVs, but it looks like its teams failed to detect a new issue, basically this update performs a factory reset. VGC has both experienced the issue and has been tracking reports from other users. The good news is that users still regain access to their games once the console has completed repopulating its dashboard.
“After installing the Alpha tier update, our Xbox deleted our user profile. When we performed the initial setup again, our wallpaper, recent games and other settings had been removed.“
-VGC
The bad news is that users will have to re-add their profile, and reconfigure their settings again, including settings for games. Some users on Reddit have reported their consoles are now stuck in an update loop with others claiming that games will not update until being launched. It’s also been said that media app profiles also get wiped after this update.
Per VGC:
“We had to add our Xbox profile and sign into it again, and follow the various other display and account setup steps before we were able to return to the dashboard.”
@XboxSupport are you joking me I got 5gb Xbox update which put my console back to factory settings now I’ve lost all my Xbox profiles you joking 🤬🤬
— 😅⃤Tristin ＶＵＫ Ｎｉｎｊａ 😅⃤ (@vuk_ninja) March 6, 2025
The most troubling part in all of this is that while this update began as optional, it became mandatory today, so members of the Xbox insider program are now stuck with it upon starting their consoles.