What are the steps of signing in a guest account when playing Forza 7

Please make sure the steps mentioned in the following link are respected to make sure you don't have any issues with your Xbox guest account: What are the steps of signing in a guest account when playing Forza 7 - Microsoft Community

If everything is fine as far as your Xbox guest account, and you are still encountering the issue, it means that you will need to check things further with the developer of the game themselves to check from their end if there are any restrictions put or if anything went wrong.

You need a second controller and bind it to a guest

However to get game saves you must have a profile assigned to the guest as only the primary would be able to save

Guest accounts are only secondary temporary profiles

This is why a real profile is needed to be lijnked

To a forza hub accounr

Guest profiles can only br played while the primary account must be signed in on a controller

And guest has to be on the second controller or first but only one profile can only be on one controller at a time

If you want not to be on the primary you MUST make an online account and be signed into forza hub

Hi! we've done all the steps but it still is not working. What happens after step 4? When we try to sign i guest, it still says sign in with your profile to enable xbox guide.

Hi MARCOLAGAMES!

You also have the option to setup a Guest Account or Keys on your xbox.

When you have a guest who wants to play side-by-side multiplayer games but doesn’t have an Xbox Live account or gamertag, you can create a guest account on your Xbox One console for one-time use. This temporary
account is created as a copy of the account of the person who’s currently signed in to the console.

At the end of the session, when the person whose account was used to create the guest account signs out, the guest account is also signed out and removed from the console.

Note A guest account is different from a guest key. A temporary guest account can only be created while you’re signed in and is deleted as soon as you or your guest signs out. A guest key is
a reusable passcode that allows guests to use your console without requiring you to be signed in.

https://support.xbox.com/en-US/my-account/security/use-guest-account

Guest Key solution: https://support.xbox.com/en-US/my-account/security/setup-guest-key-limits

Maybe that can be a legal workaround for your situation.

Hope this helps!

Happy Gaming!

PSA for the Ambassadors: this was taken directly per quotes from xbox support forum guidelines, this does not violate any terms and services agreement.

A forgotten guest key can be reset by any adult, as long as that person knows their Microsoft account password and is signed in on the console.

1. Follow the steps to remove a guest key.
   
2. When you’re prompted to enter the guest key, enter an incorrect key three times, and then enter your Microsoft account password to remove the guest key.
   
3. If you want to create a new guest key, select Create a guest key and follow the steps.
   

In your case, since you deleted your Microsoft account, I would recommend creating a new one as that would be the only option!