I have two Xbox at home. Home Xbox function isn’t working.

Make sure your account isn't automatically signing into the living room console also. If it is ad someone else is just switching accounts, your account may still be signed in so the system thinks you're playing as well.

When trying to put my account on his xbox, it says “there are already to many people using this home xbox and will need to take someone off before you can use it” something along the lines of that but he is the only person that i have put my xbox account
om to put it as my home xbox

The primary profile has to be signed in to the shared Xbox. You are not able to sign in to multiple consoles at once with this profile.

So if you're trying to put your account on a friends Xbox to share games, then play on your own with/against them it's not going to work.

I'd also highly recommend against setting your home xbox on someone else's console.

We live in the same household and we are trying to give each our games so we can play together, with ease and when trying to put my account on his xbox it is saying that there are too many people using it even though i do not give my information out to
anyone else and my friend is an only execption as we live together so i know my account cant be used from someone i dont know

Only the account that purchases Ultimate would be able to play on the cloud. If they were able to before, it either wasn't working correctly or they also had a subscription on their account.