Arcade games in my games are a gray box with a white controller

have you tried reinstalling any of them?

Try going to the game options were the saved info is.

go to My games & apps then go to the games and press the three lines button on the controller to open that games menu. you should see: pin to home, see in box store, and manage game in a gray box. go to manage game and it should take you to options for the
internel/external data for the game as well for saved data.

The limited edition Gray and white controller with the transforming D-Pad is the best. I bought this a month ago and I use this more than the controller that came with the system!

i am having this issue too! also all the boxes on my homescreen are just gray or green (apart from the games) all the apps like netflix, twitch, youtube, upload studio, are all just blank gray or green boxes instead of their logos!

The Reference Level set at 'Expanded' setting is only on your Xbox, not your TV.

For your TV/Monitor, I would suggest leaving the TV's Black Levels at Low because at a High setting, if set incorrectly, it gives a murky filter to the overall picture quality, even though it is at times able to bring out certain black levels which are otherwise
unnoticeable, like in the Xbox's DVD player functionality.

Use Battlefield: Bad Company 2's 'Default' settings to adjust your brightness levels. Since the game's video settings are extremely close to the basic brightness settings set on a professionally calibrated TV.

So make sure that Battlefield 2's video settings are set to 'Default' and do the following, but only with your LG TV's Brightness and Contrast settings.
NOT the game's settings. So do not touch the in-game settings at all.

Adjust the brightness setting on your TV so that the first box is black, and the box next to black is only just noticeable, it should be an extremely dark gray in color.

Next adjust the contrast settings of your TV until the farthest right White box is white (at the top row), and the box next to the White is just noticeable but extremely light grey in color. Make sure that these boxes do not alter in color when adjusting your
TV's contrast levels, if they do change in light tones of either pink or green or blue and yellow, then that would mean that your contrast settings are set too high.

At the top there are two big boxes with smaller boxes inside each one of them. Use this to guide you. The gray box inside the white should be neutral and very light gray in color. The black box with the dark gray box inside of it should be extremely dark, but
you should be able to see a very small difference between the big black box and the smaller gray box.

So to go over the above steps again. Set the game's video setting to default, then adjust only using your TV/Monitor's brightness and contrast settings.
Turn off every setting on your TV such as Fresh Contrast, Noise reduction, and other useless settings on your TV for better picture quality. You can leave Real Cinema on though, which will help with the frame rate consistency a bit.