Use subscription and play games while there is ongoing update on my account

go to https://beta.support.xbox.com/contact-us and click the Contact Us button.

Select Family and Online Safety and I Want to Protect My Account in the options.

scroll to the bottom and select Request a Call.

hope this helps

It is possible to share Gamepass on PC. I will play Sea or Thieves or Forza on my PC using my Gamepass subscription while my kid plays on my home xbox using his account.

He essentially uses my Gamepass subscription on my Home Xbox while signed into his own account. I use my account on the PC and we play together.

It's a common thing many families do.

Is there a way to access other things on my Xbox One, like Kodi and Hulu without signing into my Xbox live account while the service interruption is ongoing?

You can stay updated on the service outage here https://support.xbox.com/en-US/xbox-live-status

you cannot use your account balance to pay for subscriptions, you must use dedicated game pass cards or a credit card/PayPal

Yes you can,you still need a credit/debit card/paypal registered though as it's an ongoing subscription.

As Gooni3zGaming states, for a subscription service you need a credit/debit card or PayPal account for the ongoing subscription fees.