Xbox’s latest system update for Xbox Insiders is removing their user profiles
Players signed up to the Xbox Insider program are getting a Factory Reset style start-up

Players signed up to the Xbox Insider programme are reporting issues with the latest system update.
Participants signed up to the Alpha and Alpha Skip-Ahead tiers of the Xbox Insider programme – which lets them download system updates before anyone else to help with testing and troubleshooting – are having their profiles removed.
VGC is signed up to the Alpha tier and can confirm the same thing happened on our Xbox Series X console.
While the latest firmware version was added as an optional download on Wednesday, this became a mandatory download at 6am ET / 11am GMT today.
After the update was downloaded and installed, rather than simply updating the system software and rebooting to the Xbox dashboard as usual, our console instead loaded the initial setup procedure that runs when the console is used for the first time.
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.
At this point, while our previously installed games were still present on the console and hadn’t been deleted, all our other settings such as wallpaper, system settings, recently played games and Quick Resume data had been removed.

Other Xbox Insider members have been sharing similar issues on X and Reddit. “Xbox Support, are you joking me,” read one user’s tweet. “I got a 5GB Xbox update, which put my console back to factory settings. Now I’ve lost all my Xbox profiles, you’re joking.”
“Came home to my Xbox today after work and found my console had factory reset itself after it automatically downloaded update 2504.250227-2200,” wrote another user on Reddit. “Biggest bug I’ve ever seen release in all my years of being in the preview program.”
“I just had same issue on my second boot after applying the update,” added another. “All my games and apps were safe, the My Games & Apps section just had to re-populate the library, which only took a minute. It does mean losing some settings though, which was slightly annoying.”
The update also seemingly logs users out of all their media apps on the console, meaning they’ll have to log in again before being able to use them.
According to Xbox’s patch notes, the latest update is supposed to do the following:
Profile
Fixed an issue where viewing your own profile would appear as if viewing another user’s profile unintentionally, offering none of the expected customization options.
TV & Display Options
Fixed an issue where the console would not correctly detect support for Dolby Vision and Dolby Vision for Gaming when connected to certain TV models, and playing Dolby Vision content would instead fall back to HDR10.
System
Various updates to properly reflect local languages across the console.


