Can't play or install game

Hello Ali W. my name is Oskayra, and I will be happy to help you.

Beforehand, it is important that you keep in mind that this is a public community forum, so we are players like you, we are not employees of Microsoft or Xbox, so we do not have access to any user account or check anything from the forum. All users help each other with common problems.

Note: This is a public forum therefore, I suggest you not share your personal information.

I am very sorry for the problem you are going through, with the intention of being able to help you I did an internal search on the Microsoft forum and found a publication by Gerardo C., an independent advisor, where he mentions the reasons why perhaps you cannot install the game and I thought it was good information, which you should take into account:

Step 1: Check the Xbox network status

Check the Xbox status page. If you see any services with alerts, expand the service, scroll to Notifications, and sign in to receive a message when the service is back up: https://support.xbox.com/xbox-live-status

Step 2: Sign in to the Xbox network

If you purchased or installed the game or app from the Microsoft Store on Xbox, make sure you're signed in to the Xbox Network.

Step 3: Have the owner sign in to the Xbox network

If someone else installed the game or app digitally (discless), that person must be the one to log in to the Xbox network.

Tip If the game owner chooses a specific console as their primary Xbox, anyone using that Xbox can use installed games and apps, even when the person who installed them isn't signed in. For more information, see: https://support.xbox.com/help/hardware-network/console/my-home-xbox

If none of the previous options work for you or is the case, what would be left to do is request a refund for your purchase since it was not made:

For a REFUND there is a form, which is the following:

https://support.xbox.com/forms/request-a-refund

There you will have to fill out the form with some information that will be requested and you should know that in case the refund request is rejected, you will have to respond to the email they sent you explaining the reason for your refund so that the team in charge can review the request again.

You should also know that game refunds must be made before 14 days have passed since the game was purchased and the game has not been played for a long time, that is, considerable hours of play have not been accumulated. Otherwise, if these prerequisites are not met, the game cannot be refunded.

Subscriptions can be refunded within 30 days of purchase.

Information Source (Credits): https://support.xbox.com/help/errors/error-code-0x803F8001

Sincerely,
Oskayra.

@M Bierce

You can't play a disc game while installing another disc game

But you can play a disc game while another is downloading, play a download while installing a disc or play a download while installing another download.

instead of playing the game press x before you select play game. Then on disc details install the game if it installs there shouldn't be a problem with the disc. if it can't install the disc has a problem and you will need to buy a new disc.

Uhh can't you start playing the game when it's installing??

I don't think this is a choice someone made to just not allow the game to install. If the game is scratched and can't be played, then it can't be installed. When the console checks the disc to play an installed version, it is only reading a very small section
of the disc, probably an unscratched area. You can try getting the disc resurfaced at a local game or music store.