Microsoft recently rolled out a new preview update for Xbox One users who have agreed to take part in the Alpha firmware update program for their consoles. This update is reportedly troublesome as it has introduced a factory reset on the console leading to users setting up their console again from scratch.
This issue has been discussed on reddit and Microsoft has acknowledged it assuring the users that they are working on an early resolution for it. However since this update only effects the users who are a part of the Xbox Insider program letting them download any future firmware updates ahead of the official launch, it doesn’t appear to be that widespread.
The update apparently performs a complete factory reset which results in the user losing their update data, profile information and settings as they have set on the Xbox One. It sounds terrible but it was also one of the risk that comes with installing updates that are still in testing phase. Recently, I also faced a weird issue even if I was not a part of the Xbox Insider program where the console prompted for an update that was not even released. Hopefully Microsoft can work on a solution for this issue soon.
Let us know if you have been affected by this update in the comments below.