The issue is evidenced if a console is powered up and a setup screen appears. Many Xbox One users have reported the same problem and are voicing their concerns on social media. With consoles booting to the initial setup screen, there is obviously a worry data will be lost. However, users report that is not the case. Once they complete the setup process, all previous data, game files, and settings are intact. The only inconvenience is needing to setup and the fact the machine will be signed out of the associated Microsoft Account.
— Xbox Support (@XboxSupport) August 31, 2017 Twitter and Reddit are lighting up with reports of unwanted factory resets following the latest Xbox One update.
General Update Problem
One of the more interesting aspect is Microsoft now operates an Xbox Insider Program. All update builds are run through Insiders before reaching all users. It is strange that this issue was not found in any preview builds in the testing process. However, this could be because the problem appears to stem from the last Xbox One general update. Released on August 29, it added nothing new to the console, and as such did not pass through Insider branches. Instead, it was rolled out to offer “general stability and performance improvements.” As you can see above, Microsoft confirmed the problem through Xbox Support Twitter. The company said there was an issue that has now been resolved. Let us know in the comments if your Xbox One was affected and if the issue persists.
