Connection not possible

Greetings PacMans!

Could I have you try the following steps up front and in given order. Post back and let us know how that goes and we'll go from there.

*If you have the two-step verification turned on/enabled for your Microsoft account, then you need to Create a new app password under App passwords. You will then use this new generated app password to sign in or download
your profile instead of your Microsoft account password. Here's how!

*This is used for when you have the two-step verification turned on/enabled.

Can you verify that you have updated the security proofs like phone numbers, alternate email addresses, and security questions and answers to your Microsoft
account. This information is essential to ensure that your account is well protected and meets the security standards that Microsoft provides.

With your security proofs being updated, let's focus on the next steps: Delete Profile Only from the Xbox storage device, clear system cache (three times in a row) and finally, recover your profile from LIVE.

How to delete Xbox LIVE profile safely

Before you delete your profile you have to know the username and password for your Microsoft account that is associated with your profile.

1. Go to Settings, and then select System.
2. Select Storage.
3. Select All Devices.
4. Select Gamer Profiles.
5. Select the gamertag that you want to delete.
6. Select Delete.
7. Select Delete Profile Only. This deletes the profile but leaves saved games and achievements.
   

Clear Xbox system cache (3 times in a row)

1. Press the Guide button on your controller, go to Settings, and select System Settings.
   
2. Select Storage or Memory.
3. Highlight any storage device, and then press Y on your controller.
4. Select Clear System Cache.
5. Important: Clear your Xbox system cache 3 times in row.

Restart your console

Download Xbox LIVE profile.

1. Press the Xbox Guide button on your controller (large X button in the center of your controller).
   
2. Select Download Profile.
3. Enter the Microsoft account associated with your Xbox LIVE gamertag.
4. Enter your Microsoft account password.

Post back and let us know if you were helped by this.

You were always told way ahead of time when the day one patch was announced that you will need to connect your console to any internet connection 1 time. After that patch has downloaded you can then disconnect from Xbox LIVE.

I am not 100% on this but I heard that you will need to connect to the internet once for the initial set up. After that, you will no longer need internet connection to play. If anything, you can connect it to a friends house?

Also, the competitor is having multiple issues lol.

Xbox is currently having issues and it is affecting both Live connection and Cloud storage.

I certainly have XBOX Live GOLD (I also have paid for it...). Where do you see that I'm just silver? I see a G in the figure (or has that nothing to do with Gold?)