I cannot update my console to the omega version

As previously advised, the version, 18363.7196.191016-1200, is an Omega Insider build; refer to Insider Hub >Manage Devices; so therefore a OSU (Offline System Update) cannot be used unless the console is first unenrolled from the Insider preview program.

Check
Reddit Xbox Insiders wiki

That is actually not a bad idea. Staying in the Omega ring has very low risk. But in case something does go wrong, one can still revert the firmware update if it was still an omega version. And then block firmware updates until a fix is available.

The main issue with this broken firmware release is that there is no way to roll back to an older firmware version.

In my understanding the Dashboard experiment, A, B, C selection, is totally random.

As "Both consoles say their OS Version is (19h1_release_xbox_dev_1911.191028-1335)" your consoles are either in the Beta or Delta ring.

Both those rings and Omega ring are getting a preview update News release notes Beta Delta Omega
Insiders today, which you can manually start or wait until it becomes mandatory.

After you do the update, if you want to change rings, it will be the perfect time to change as all those rings will be on the same release. Subject to eligibility.

Have you tried to power cycle your console? yes

Have you a stable (an fast) internet connection? yes

If you are using an external HDD, have you checked that is 100% working? yes

I am relatively sure that something is wrong with my latest update, my console is the day one xbox one version. i am in omega xbox insider program. i cant do an offline update to reset my console because cant find any
OSU file suitable for my os version. my os version is 10.019041.3068. and on xbox.com the latest post is May 2020 update. if i can, i dont want have to reset my xbox ...

"If it helps, the OS Version is 22000.3542.amd64fre.xb_flt_2202co.220202-1734"

This version is a Insider Omega ring OS so an Offline system update using OSU1 file will fail every time with an error. You need to unenroll the console from the Insiders previews.

E101 points to a hardware issue with the console.

You could try this....

If your using ethernet disconnect it from the console and perform a Factory refresh and delete everything.

If successful the console setup should start. You'll need your account details.

If you keep getting E101 the console needs repairing.

Thanks for the reply. I have no idea how an 11-year-old got himself enrolled in the Insider Omega ring, but I'll definitely look into that. Now for a dumb question: if the system cannot boot up to the home screen, how would it know that it's no longer in the Insider program?

EDIT: I installed the Insider Hub on a PC and signed in using his Microsoft account. It shows that this device isn't enrolled.