Update: This issue is now fixed. You can read the original story below.
Users who are currently participating in the Xbox One Preview, Microsoft has instructed participants to not install the most recent update due to an “unforeseen bug” which factory-resets the entire console, formatting the hard drive and removing all your games.
Those who are not participating in the Xbox One Preview do not have to worry, however if you are part of the preview and receive a 1900MB update, decline it. Declining the update will disconnect your Xbox One from Xbox LIVE, meaning you will not be able to play online.
Microsoft has said in an official statement:
Xbox Preview Participants,
Due to an unforeseen issue with our update system, if when powering on your Xbox One console you are asked to download a system update, please decline it. By declining the update you will go off-line and not be factory reset. Please leave your console powered on until further notice.
We’ve identified an issue that could cause a small sub-set of consoles enrolled in Public Preview to factory reset after downloading the latest system update (deleting all local hard drive content). Note that a factory reset does not impact profile settings or game saves (which are synced to our servers when you connect to Xbox Live), or content stored on an external hard drive. For now, please decline the system update until we can address this issue on our end.
Of course, preview users who wish to play online aren’t going to be too happy about this bug. Hopefully Microsoft issue a fix as soon as possible so preview participants can play online again. Perhaps Microsoft will issue preview users extra Xbox LIVE Gold time for all the time unable to play?Further reading: Microsoft, Xbox One