Summary
- Xbox Insiders preview console update 2504.250227-2200 is reportedly causing factory resets on Xbox Series X|S consoles.
- The update is also disrupting updates for games and apps, preventing fans from installing updates.
- A bug fix is now rolling out for Xbox Insiders, but users affected by the bug may need to manually configure some settings.
A new Xbox console update for the Xbox Insiders program is reportedly resetting consoles back to factory settings. Ahead of the Xbox update’s rollout for all users, a staff member for the Xbox Insiders program addressed the situation before more Xbox Series X|S users are affected.
The Xbox Insiders program lets members test out features and try out preview versions of OS builds that will be deployed to all Xbox One and Xbox Series X|S users at a later date. These updates are first released to the Alpha Skip-Ahead ring of Xbox Insiders, which allows the developers to receive feedback and resolve issues before a larger rollout to more users. Xbox users can sign up for the Xbox Insiders program for free, start as an Omega member, and increase their Insider Level over time to access preview builds earlier. However, Xbox Insiders may want to express some caution before downloading the latest preview update due to its newly discovered issues.
Reddit user Xenokaiii shared their frustration after their Xbox Series X|S console automatically downloaded update 2504.250227-2200, which has a 5GB file size and is available to Xbox Insiders. Although automatic updates aren’t abnormal on Xbox, the update was released with a bug that caused the user’s system to initiate a factory reset, resulting in profiles, game libraries, and other data being removed from the console. Xenokaiii claims that this was the “biggest bug” they’ve had ever since as a member of the Xbox Insiders program, and many other users are chiming in with the issues they’ve experienced with the update. One of the issues that could potentially occur after installing update 2504.250227-2200 involves updates for games not downloading or installing, which is what some users call an “update loop.”
Xbox Insiders Preview Update 2504.250227-2200 is Reportedly Causing Factory Resets on Xbox Consoles
The Reddit post caught the attention of XB1R_Hypnos and GuruKronos, who are both members of the Xbox Insiders staff. According to XB1R_Hypnos, a service issue impacted system updates, in addition to game and app updates, and a fix for the factory reset bug is rolling out for Xbox Insiders. Early user reports indicate that the bug fix was successful and prevented the factory reset bug from happening, so XB1R_Hypnos encourages Xbox Insiders to update their consoles again. The update process can also be initiated from the mobile Xbox app, but it’s possible that players may need to manually update from the console if they’ve been affected by the bug.
Although a fix is rolling out for Xbox Insiders, many fans are not happy that this issue wasn’t caught before the update was made available in preview. Even after installing the fix, some users report that they needed to adjust or reconfigure settings on their Xbox Series X|S consoles. Fortunately, the fix does solve the looping problem that some users may have experienced with their Xbox games and apps on Xbox Series X|S.

Xbox Series X
- Brand
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Microsoft
- Operating System
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Proprietary (Windows-based)
- Storage
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1TB WD SN530 NVMe SSD
- VR Support
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No
- Resolution
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720p – 4K UHD
- App Store
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Microsoft Store