I am signed in to both Xbox app and the Microsoft store. When I click on “Not You?” on the error screen it finds my account, logs in fine, then when I press “Let’s play” it gets me back to the error screen.
Windows live is having issues with sign in right now. Mine is doing the same thing. It happens from time to time. Before doing something as drastic as a Windows install, always check the status on the Xbox Live website first.
XBox Live server status may have been a coincidence… I’m having the same issue as OP and Xbox Live status is all green. But I’m pretty sure I’m not going to waste my time re-installing windows to see if that solves the issue. I will just get a refund on an unplayable game.
I was having the same issue a minute ago. Kept trying and it just started working. Probably took like 5 minutes to work again, so just try with one minute intervals.