Show offline but online

Yes, I found the location where it seems to offer the option to toggle "online" to "offline." I toggled it while watching the other computer and nothing changed with regard to the computer appearing "offline." It would seem that whatever is showing...offline
or online is what the setting is. But maybe I misunderstand and what is showing...eg "offline" mean you click it go GO offline and then it shows "online" and you click that to GO online. That would seem counter-intuitive.

Regardless, no matter how it is setting, the other computer sees this user as "offline." Thanks for you responses.

I have friends that show up offline but are online. First does he has his offline set to offline? If that it might just be a bug where people show offline when they arent.

I actually solved the issue, and it was the appear online thing...IT is VERY misleading because when you go on your profile, if the button shows "appear Online" then you are actually appearing offline...Click on it so that it says "appear offline" .

So basically it doesn't show your current online/offline status, it shows what you can set it to.

Hope this helped.

When you look at your setting does it say "Show Offline" or "Show Online" If it says "Show Online" then you are appearing Offline to your friends. It is a simple toggle. When you look at it it is showing your friends the opposite of what it is showing
you. So you if want to appear Online to your friend you will want the switch to say "Appear Offline". This may not be the issue but it has confused a number of gamers in the past. Let us know. Good Luck!

Are you under Xbox Preview System? If not could be just a temporary bug, happened a lot a times with me also, but after a few days fixed in its own.