Disconnecting headset (wireless/wired) causes video in Youtube and Dashboard audio to play...

Are you using a 3rd party wireless headset when playing a game?

"Third-party wireless headsets can cause active interference because they broadcast on the same frequency as wireless routers. To identify if the headset is causing the issue, disconnect the power from the base station of the wireless headset, then
check to see if this clears up the connection problem you were experiencing."

Before you go down the route of a Complete Factory reset I would try a wired connection to your router.

Is it a wired or wireless headset?

If wired, try making sure the audio port on the controller is clean as well.

Is this a wired or wireless headset? Headphones will typically be packaged with a manual for troubleshooting disconnection.

Are you using a wired connection or WiFi to connect to your router?

If using WiFi and 3rd party headset Disconnect the headsets or look for other

Wireless interference that may be causing these dropouts from XBox Live when you are updating.

A wired connection causing dropouts may be a Faulty cable or port on your router.

Hi braelynnfiedler,

Firstly is your headset wired or wireless, if it is wireless you will need to reconnect it to the xbox after a reset as the xbox has now removed anything that was connected to it, if it is a wired headset then maybe try disconnecting the controller and reconnecting
it again to see if that helps.