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Avatars are retiring. There will not be an Avatar Kinect on Xbox One. Microsoft is getting rid of avatars and all users who bought gears for the avatars will be issued refunds.

It might be because you need the new style of avatar for some clothes

If you want to update your new Xbox Avatar, we’ve created an app for that: the

Xbox Avatar Editor.

https://beta.support.xbox.com/help/account-profile/profile/find-old-avatar

However, if you want to continue using your existing avatar and any of the content you’ve purchased or been awarded for it, you can do that in the

Xbox Original Avatars app.

Deck out your Xbox Original Avatar, and then import it to take the place of your gamerpic or new avatar.
To import your original avatar:

1. Launch the Xbox Avatar Editor app.
2. Select Xbox Original Avatar, then choose your original avatar.
3. Select Import.

Give it a few seconds, and voil ! Your Xbox Original Avatar once again represents you across Xbox.
If you want to use your Xbox Original Avatar as your gamerpic, use the Xbox Original Avatars app. Only the new avatars are able to use the Photobooth feature in the Xbox Avatar Editor.

The old avatars and avatar content is not compatible with the new avatar system. I have lots of items that I wish I could transfer to my new avatar. We do have the option to use either avatar we wish as a profile.

If you purchased it in the Avatar marketplace then that means it is an avatar item only and not for use in the game. You'll have to go to Social then click on his avatar and go into the avatar gallery to access it.

The avatar reward offered on by Uplay is only for your Uplay avatar and is not a costume for your XBL avatar.