Xbox live keeps disconnecting, making game pass unplayable

This could be simply that your internet isn't strong enough to handle multiple users. If you have a lot of people in your house all using various devices your ping will spike and you can be removed from matches. People confuse fast internet with
strong internet all the time.

It happens when I'm the only person in the house and when there are multiple people. Xbox network settings display a latency between 10 and 30. Which is quite low.

if you are connected in WIFI,try to get close enough.

It's about 3 or 4 meters. Which is 8 to 12 feet. Would be weird though if that is the problem. I've moved the router a couple of times and aside from the Xbox, no other device in the house has any trouble staying connected to WiFi.

I'm going to try and use the xbox at a friend's house tonight, to find out if it's purely an issue that occurs only at my place - in that case I will know if it's my internet/setup or if the problem is related to my xbox/game/profile. Thanks for
the suggestions!

Try both ethernet and wifi connection.

Thanks for your detailed answer T3chnlgydude,

I fixed the issue by using internet through an ethernet cable. No disconnection issues occurred whatsoever during multiple hours of playing online.