UPDATE 7/3/25: Microsoft has fixed the issue that reset some Xbox Insider consoles back to factory settings, the company has now confirmed, without providing more details as to the reason why this happened.
“We are aware of an issue impacting Alpha and Alpha Skip-Ahead Xbox Insiders,” a message posted on social media and shared with Eurogamer this morning reads. “The issue has been resolved, and players should restart their consoles. If your console was affected, you can complete a console setup by following steps provided on Xbox Support.”
Were you impacted by this bug?
ORIGINAL STORY 6/3/25: Xbox owners enrolled into the Xbox Insider program are reporting that their consoles are being reset back to factory settings by a new update.
The Xbox Insider program allows users to receive new system features early, and is split into various ‘tiers’ for how new and/or buggy they want these features to be when they receive them.
Users in the earliest Alpha and Alpha Skip-Ahead tiers say the latest console update is removing their Xbox profiles, console settings and Quick Resume data (thanks, VGC) – and has now been made a mandatory download, so cannot be skipped.