Purchase online but copy from disc

sounds like possibly you have a damaged disc. 87% in offline mode would imply that it can read that much before it reaches an unreadable section. 34% online mode would indicate that the first 40% is installed from the disc, and the rest is downloaded from
the internet. oddly when installing games online, it doesn't distinguish which part of the install is from the disc or downloaded.

perhaps you can rent or borrow a copy from someone and install that, or get your copy replaced if it is newly purchased. that would also be a good way to tell that it is actually a problem with your disc. chances are, you can continue to use the damaged
disc once it installs completely. i have done this multiple times with 360 discs that would not play or install, but worked fine after installing from another copy.

Hmm, was your copy of the game purchased online, or from a different region than where you're trying to play currently? And I see you've now tried your disc on three systems, but have you tried another copy of the game on your console?

Hi, if you purchase a disc copy of a game, it will install the data from the disc to the hard drive, and will not download the game. However, game updates may be required to play online.

If you purchase a game-code from your local game shop, it will require you to download the game from the Xbox Live Marketplace.

It's your call, but only the disc will not require you to download the whole game - only potential updates.

If you want to play a game without the disc make sure you a purchasing a digital download online from the Microsoft store instead of purchasing a disc. This buys the game and allows you to internally download it directly to your hard drive on your console.
Most retail games with be disc format, occasionally you can find some digital purchases at the retail store by buying a digital copy of it on a gift-like card that allows you to redeem the code online.

As the list of backwards compatible games expand digital copies that you have purchased in the past will be added to your Ready to Install list. Disc based copies will need to be installed from the disc.