This Xbox update is resetting consoles back to factory settings

Xbox owners that have downloaded the latest update within the Insider Program have reported their console being reset back to factory settings.

This Xbox update is resetting consoles back to factory settings
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TL;DR: Xbox Insider program participants report a faulty update causing consoles to reset to factory settings, removing profiles and Quick Resume data.

If you are one to keep your Xbox up to date, then you may want to beware of the latest patch, as reports have surfaced it's causing Xbox consoles to be reset back to factory settings.

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Xbox owners who have opted into the Insider program, which enables entered-in consoles to receive updates before they have reached the public, are reporting a faulty update that is causing Xbox profiles to be removed, console settings to be reset, and Quick Resume data to also be removed. Notably, the Xbox Insiders program is split into two tiers, Alpha, and Alpha Skip-Ahead. Reports indicate users in both of these tiers are experiencing these issues with the latest update.

Users are taking to Reddit to voice their concerns, with one user writing in the /r/XboxInsiders subreddit, "Came home to my Xbox today after work and found my console had factory reset itself after it automatically downloaded update 2504.250227-2200. Biggest bug I've ever seen release in all my years of being in the preview program!"

Xbox has been running its Insider program for more than 10 years now, and reports indicate this is one of the biggest faulty updates ever to hit Insiders. Another Reddit user experiencing the problem wrote, "This one actually factory reset my Series X," another user wrote. "It must've updated today and now my console is requiring me to set it up as brand new."

While I can't verify the severity of the update or if this is one of the biggest faulty updates ever to hit the Insiders pipeline, I can recommend anyone who is currently within the Insider's program to opt-out if they don't want their console to be factory reset. Unfortunately, this is what Insiders sign up for, and it's the purpose of such programs.