Xbox has issued a response to multiple reports thatXboxInsiderprogram members were experiencing factory resets. The Xbox Insider program is a beta testing program that lets Xbox users join playtests, get early access to new features and games, and provide feedback that helps Microsoft improve the Xbox gaming experience on consoles, PC, mobile, and beyond.
A number of Xbox Insider members took to social media toreport that the latest update caused their consoles to complete a factory reset.An Xbox Insiders staff member who goes byXB1R_Hypnoson Reddit has issued an official response,stating that the bug was caused by a service issue, and thata fix is already being rolled out.The response in full is below:

Hey all, thanks so much for all the reports! There was a service issue that impacted both system updates as well as game and app updates, and we have a fix rolling out now. We have early reports of success (my console updated now), so if you haven’t tried updating again recently, please do so. Also, we had one person report that if you’re trying to set up your console via the mobile app, you may need to try manually instead.
What Happened With The Latest Xbox Insider Update?
A Mandatory Update Caused Xbox Consoles To Reset To Factory Default Settings
The issue popped up from what was supposed to be a routine update, and seems to be specifically affecting the Alpha and Alpha Skip-Ahead tiers of the program. Many reports, like this one fromXenokaiiion Reddit, state thattheir console completed a factory reset after downloading update 2504.250227-2200.The update is removing Xbox owners' profiles from their consoles and resetting the system to the factory defaults.
Several Major Titles Are Leaving Xbox Game Pass This Month, Including Highly-Acclaimed Souls-Like
Eight games are scheduled to be removed from the Xbox Game Pass catalog in March 2025, including a popular Souls-like title from 2023.
Although the reset doesn’t remove owned games or delete the profile, players arestill frustrated at the bug, with Redditor Xenokaiii calling it the “biggest bug I’ve ever seen release in all my years of being in the preview program!” Other Xbox Insider members are reporting similar issues, withseveral consoles reportedly stuck in an update loopas the update results in an error and tries again, repeatedly. Many are requesting that Xbox take down the update until they resolve the issue.

It’s Taken A While For Xbox To Respond To The Worrying Reports
This Is The Very Reason Why The Insider Program Exists
The response of the Xbox team has taken longer than it should, considering that theXbox Insider program is specifically designedto squash these kinds of issues before they’re rolled out to everyone. The update was pushed out at 2 p.m. on Wednesday, March 5 and made mandatory at 3 a.m. PT this morning, according to theXboxwebsite. That meansit’s taken the team nearly a day to take any steps toward resolving the issue, at least publicly.
The amount of time it took for the developers to respond is concerning. RedditorMartin__Dstates that they understand bugs are expected as part of the program but “it’s the complete lack of action on the development team when a bad update goes live on a test branch and it stays live for 18+ hours.“Xbox Insidermembers will have to wait a bit longer to regain control over their consoles again, but at least now we know there’s a fix on the way.
