"How do you reset the whole system settings to default without resetting my hard drive??"

Hey there DustyNight57454,

The system settings are stored locally on the hard drive for the Xbox 360, so the only way to reset them is to reset the hard drive. Some items can be cleared individually in the System Items section of your storage device however though.

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Without a hard drive there is no data to reformat or reset. You can reset the network settings though. How to reset or reformat your Xbox 360 to factory default settings | Xbox Support

Does it have no hard drive at all or does it have internal storage?

I'm Samy an independent advisor and I'll be helping you

How are you?

Remove the external hard drive from your console and do some tests, see if games run normally without the external hard drive.

If they run normally without the external hard drive maybe this is the cause of the problem may be resetting the console can help and if the problem persists I recommend formatting the external hard drive.

If you need to reset the console>

Reset the console to factory defaults, you won't lose anything but you will need to log in with your account again. Email and password are required.

Follow this path and select reset keeping games and app.

In 5 to 10 minutes you will finish reconfiguring your console

To reset the console>

Settings> System> Console Info> Reset Console

***Do not reset your console without having your account email and password.***

I'm Samy an independent advisor. Welcome to the Xbox community. How are you?

Remove the hard drives connected to the console and reset the console to factory defaults, you won't lose anything but you will need to log in with your account again. Email and password are required.

Follow this path and select reset keeping games and app.
In 5 to 10 minutes you will finish reconfiguring your console

To reset the console>
Settings> System> Console Info> Reset Console

***Do not reset your console without having your account email and password.***

After resetting the console, connect the external hard drive and see if it solves the problem.

Hi,

The Xbox One System software now allows you to do system resets without removing your installed games. You should only need to do a full system reset as a last resort for troubleshooting system issues.

https://support.xbox.com/xbox-one/console/reset-console-to-factory-defaults

As for backing up your games, you can do that with an external hard drive.