home xbox option isn't working while i'm offline

Try doing a hard reset (hold the power button down on the console until it turns off, unplug it, plug it back in, then restart).

1. Your Home Xbox is not set as your console. If it isn't, that is one reason you cannot play your games while offline.

2. You haven't put your console in offline only mode.

Okay... so that is the fix for when it happens, but we aren't covering WHY it is happening.

If my Xbox is set to HOME and I dont have internet, the system should recognize this and go into OFFLINE mode. Also, it isn't addressing why I can get work arounds that are not the options above to get it working.

I cannot mark this as the answer as it is not addressing the actual question... 'why'. Nor does it cover the sometimes randomness of it and why the steps I can take can get it to start working correctly.

It's already automatically offline cause I don't have internet access at my house. What I'm trying to say is the add guest option isn't available offline. How can I connect a 2nd player while being offline?

The OSU file is updated when a new system update is released. If the offline update isn't working I'm afraid your only options are a repair or a new console.

You should be able to play while the other account is offline. I have two xbox's. My account has game pass ultimate. It is set to my daughters xbox as its home xbox. My daughter is freely able to download and play games from GamePass while I'm both completely
offline, and also when I'm logged onto the other xbox that isnt my home xbox.

I would suggest trying a full power cycle and trying to play the game again